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The Finance Bill 2023 proposes to exempt pension fund investments from taxation under infrastructure investment trusts (InvITs).
The government through amendments, has proposed several major changes in the Finance Bill that include those relating to debt mutual funds, pension funds, capital gains and more. The Finance Bill 2023, cleared by Parliament March 24, exempts pension fund investments from taxation under infrastructure investment trusts (InvITs). The new rule will be applicable to investments made on or after April 1, 2023.
(Infrastructure investment trusts (InvITs) are investment instruments that work like mutual funds and are regulated by the Securities and Exchange Board of India.
Real estate investment trust (REITs) companies are corporations that manage the portfolios of high-value real estate properties and mortgages. For instance, they lease properties and collect rent thereon. The rent thus collected is later distributed among shareholders as income and dividends.)