By:- Amit Shetty, CEO of Embassy REIT on The Taxation and Other Laws (Amendment) Bill, 2026
“We welcome this landmark reform and commend the Government for its progressive and forward-looking approach to strengthening India’s REIT framework and deepening the country’s capital markets.
By enabling REIT SPVs to opt for the Concessional Tax Regime (CTR) and utilise accumulated MAT credits, while preserving the tax-exempt treatment of dividends distributed to unitholders, the Bill upholds the principle of tax neutrality that is fundamental to the REIT model.
REIT SPVs opting for this regime will also benefit from a lower tax rate and will not be required to pay Minimum Alternate Tax (MAT) going forward.
For Embassy REIT, subject to the final enacted provisions, this will restore the economic value of approximately ₹592 crore of accumulated MAT credits that had previously been written off in books of accounts. The benefit can accrue progressively through lower cash taxes, strengthening distributable cash flows and creating additional value for our unitholders.
This is a highly positive development for the sector and will further enhance investor confidence in India’s listed REIT market. It also recognises the important role REITs play in mobilising long-term capital, broadening access to institutional real estate and supporting India’s continued economic growth.
The Bill will need to be passed by the Rajya Sabha and receive the President’s assent before coming into force.”