Exempt Income of Business Trust and Unit Holders - Section 10(23FC), 10(23FCA), 10(23FD) - Income Tax - Ready Reckoner - Income Tax

Exempt Income of Business Trust and Unit Holders - Section 10(23FC), 10(23FCA), 10(23FD) Section 10(23)FC - Any income of a business trust by way of interest received or receivable from special purpose vehicle (SPV) or dividend referred u/s 115-O(7) shall be exempt from tax. Note:- Business Trust means a trust registered as an infrastructure investment Trust or a Real Estate Investment Trust, in accordance with the regulations made under the Securities Exchange Board of India Act, 1992 The expression special purpose vehicle means an Indian company in which the business trust holds controlling interest and any specific percentage of shareholding or interest, as may be required by the regulations under which such trust is granted registration. Section 10(23FCA) - Any income of a business trust, being a real estate investment trust, by way of renting or leasing or letting out any real estate asset owned directly by such business trust. For the purposes of this clause, the expression real estate asset shall have the same meaning as assigned to it in clause (zj) of regulation 2(1) of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 . Section 10(23FD) - Any distributed income refer to section 115UA received by a unit holder from the business trust not being that proportion of the income which is of the same nature as the income refer to section 10(23FC) shall be exempt from the tax. If a unit holder receives any interest income referred in section 10(23FC) , from a business trust, or any income by way of renting, leasing etc. of real estate asset owned directly by the real estate investment trust (REIT) referred to in section 10(23FCA) it shall be taxable in the hands of the unitholder. However, if the unit holder receives any income from a business trust, other than referred to in sub-clause (a) of section 10(23FCA) , it shall be exempt in his hands as per section 10(23FD) .