# REIT, InvIT tax overhaul gains tempered by higher SPV surcharge 2026-08-16T13:08:51+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet The Lok Sabha has passed a taxation bill allowing special purpose vehicles (SPVs) of REITs and InvITs to opt for the concessional corporate tax regime, while making dividend income tax-free for unitholders. However, the surcharge on SPVs has been raised to 25 per cent from 10 per cent, tempering the benefit. Experts said the change reduces structuring friction but the higher surcharge could offset gains. Kunal Savani of Cyril Amarchand Mangaldas said the surcharge is a revenue-balancing measure. Rahul Jain of Nuvama Wealth noted distributions per unit could decline in the near term. Pallav Pradyumn Narang of CNK called for a lower surcharge rate. Despite the higher surcharge, the effective tax rate under the new regime is about 28.60 per cent, compared with 34.94 per cent under the old framework. Industry bodies and experts have urged the government to reconsider the surcharge hike, while some analysts expect a phased migration of SPVs to the new regime as it still offers tax advantages. ## Coverage - thehindubusinessline.com This story was synthesised by AI from the source linked above. Tags: Cyril Amarchand Mangaldas, Indian REITs Association, InvITs, Lok Sabha, REITs, SPVs Canonical: https://indianopinion.org/reit-invit-tax-overhaul-gains-tempered-by-higher-spv-surcharge/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/reit-invit-tax-overhaul-gains-tempered-by-higher-spv-surcharge/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/