# Tax bill in Lok Sabha: REIT, InvIT dividends get exemption 2026-08-06T14:38:12+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 2 independent outlets The Lok Sabha on August 6 passed the Taxation and Other Laws (Amendment) Bill, 2026, which exempts dividends paid by Special Purpose Vehicles (SPVs) to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) even if the SPV opts for the new concessional tax regime. Previously, such dividends were tax-free only under the old regime. The Bill needs Rajya Sabha approval and presidential assent to become law. From FY2026-27, SPVs staying in the old regime will pay Minimum Alternate Tax (MAT) at a reduced rate of 14%, but this will be the final tax liability and no new MAT credits can be accumulated after April 1, 2026. Existing MAT credits can only be used after an SPV shifts to the new regime, and only up to 25% of that year's liability can be adjusted. The Share India Institutional Business report expects the shift to happen in phases, with infrastructure SPVs that have large MAT credits or whose tax holiday has ended likely to move first. ## Coverage - economictimes.indiatimes.com - thehindubusinessline.com Tags: Income tax, infrastructure, InvITs, real estate, REITs Canonical: https://indianopinion.org/reit-invit-dividends-may-stay-tax-free-under-new-regime/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/reit-invit-dividends-may-stay-tax-free-under-new-regime/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.