The Finance Bill, 2021 proposes several measures to boost the infrastructure sector in the country. In this update, we analyse some of the key amendments impacting InvITs and REITs.

The Finance Minister introduced the Finance Bill, 2021 (Bill) on 1 February 2021 with a slew of measures to boost the Indian infrastructure sector. The Bill proposes some key amendments that impact infrastructure investment trusts (InvITs) and real estate investment trusts (REITs). Some of these amendments include changes in the definition of securities, enabling a secured creditor to initiate actions against a 'pooled investment vehicle' that defaults in the repayment of principal or interest to its lenders, reducing the compliance burden of withholding tax and widening the base for eligible sovereign wealth funds (SWFs) and Pension Funds (PFs) by doing away with some of the conditions which were difficult to comply with.

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