“It is a welcome amendment to the Finance Bill 2023. In sync with the spirit of the distribution methodology, the adjustment of ‘Capital Repayment’ component of the DPU against cost of acquisition will help in bringing the much-needed clarity on taxability of distributions.
While the change to Long Term Capital Gains (LTCG) has not been considered for this budget, we do believe that alignment to the LTCG treatment for business trusts, concurrent with equity instruments, would have been better in increasing liquidity and mobilising greater capital in Indian infrastructure sector.”
Harsh Shah expressed this view as a reaction to the InvIT-related amendments in the Finance Bill 2023 that was passed in the Lok Sabha on March 24, 2023.