Q61. Consider the following statements:
Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable.
Statement-II: InvITs are recognized as borrowers under the “Secuntization and Reconstruction of Financial Assets and Enforcement of Security Interest-Act, 2002:
Which one of the following is correct in respect of the above statements?
a. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
b. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
c. Statement-I is correct but Statement-II is incorrect
d. Statement-I is incorrect but Statement-II is correct
Question from UPSC Prelims 2023 GS Paper
Explanation :
Correct Answer – d
Statement 1 Source (Check Tax Part) – Infrastructure Investment Trusts (InvITs) – Structure, Types, Taxation (etmoney.com)
Statement 2 Source – Budget_2021_Implications_of_the_Finance_Bill_on_INVITS_AND_REITS_Cyril_Amarchand_Mangaldas.pdf (aprea.asia)
