Tax breaks on Real Estate Investment Trusts is much in demand by the Realty sector

Realty sector are keeping their finger crossed and are hoping that Finance Minister of India P. Chidambaram will provide tax breaks on Real Estate Investment Trusts (REITs).

What actually the realty sector wants is that the income of the investors under REITs should not be taxed. In USA income from REITs is not taxed and hence the same should be applied in India.

Tax breaks on REIT will attract investors to further invest in REITs and this in turn will increase the funds flow into the realty sector.

Once the REITs are launched it will boost the investment in the reality sector and more demand for investment grade commercial projects in India will come up at rapid speed.