Tax treatment of income from units of InvIT (infrastructure investment trust) for retail investor?

Hi All,

With the PGInvIT (infrastructure investment trust) IPO opening today, I'm looking for details of the tax treatment of the income from units of an InvIT in the hands of a retail/ individual investor as well as capital gains.

Regards,

CA. Manas Phadke

Replies (2)
Quick Summary
This discussion clarifies the tax implications for retail investors holding units in Infrastructure Investment Trusts (InvITs). It details capital gains tax rates for both listed and unlisted units, distinguishing between short-term and long-term holdings. The query also seeks to understand how quarterly income payouts are taxed, specifically whether they are treated as dividends or interest.

Capital gains realised on the transfer of units of unlisted private InvITs shall be taxable at the rate of 10% (plus applicable surcharge and cess) in hands of a non-resident unitholder and 20% (plus applicable surcharge and cess) for resident unit holder, provided the units have been held for more than 36 months. The short term capital gains (where units have been held for less than or equal to 36 months) will be taxed at the rate of 30% (plus applicable surcharge and cess) for residents and 40% (plus applicable surcharge and cess) for non-resident corporates. Non-resident unitholders may claim the beneficial provision available under the applicable double tax avoidance agreement (“DTAA”), if any.  Long term capital gains arising from market sale of listed units, both in the hands of residents and non-residents, are taxed at the rate of 10% (plus applicable surcharge and cess) on gains exceeding ` 0.1 million while short-term capital gains will be taxed at the rate of 15% (plus applicable surcharge and cess).

Thanks and how does the quarterly income payout get taxed? As dividend or interest?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details