Tax on REIT/InvIT interest from SPV:
APass-through to unit holders at slab rates
BTrust level 30%
CExempt for unit holders (per relevant Section)
DMMR
Answer & Solution
Correct answer: A. Pass-through to unit holders at slab rates
1. Chapter XII-FA: business trusts (REIT/InvIT) as pass-through entities.
2. Interest from SPV exempt at trust level; TAXABLE in unit holders' hands at slab rates (Section 115UA).
3. Capital gains retain character; dividend depends on SPV's regime.
_Source: ICAI BoS CA Final Paper 7, Ch 9 "Assessment of Various Entities"_
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