REITs REIT mutual funds and property tax compared
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REITs REIT mutual funds and property tax compared

Livemint··26 Jul

A guide compares listed REITs, REIT mutual funds and physical property on capital gains holding periods, tax deducted at source and post-tax returns. Each route taxes gains and income differently, so identical rental exposure can produce different net outcomes. Investors weighing commercial real estate access must read tenure rules and withholding norms before choosing units, fund units or direct deeds.

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What It Means For You

  • Choosing REITs, REIT MFs or flats changes how gains and rent get taxed.
  • TDS and holding period rules can shrink headline yields after tax.
  • Liquidity and minimum ticket sizes differ sharply across the three options.

What's Happening

  • Livemint published a guide comparing REITs, REIT mutual funds and physical property.
  • Capital gains holding periods and TDS rules differ for each route.
  • Post-tax return comparisons depend on tenure and distribution treatment.

Retail Access to Commercial Real Estate

  • Listed REITs opened commercial property to smaller investors in India.
  • REIT mutual funds wrap the same exposure with mutual fund tax conventions.
  • Direct property ownership remains the default comparison for many households.
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