Reit-oriented funds: should you invest?
For instance, if you buy a Reit unit at an issue price of ₹100 and receive ₹15 as repayment of capital over a few years, the payout is not taxed immediately, but your acquisition cost falls to ₹85. If you sell the unit for ₹120, capital gains tax applies to ₹35 rather than ₹20. If cumulative repayments reach ₹103, the excess ₹3 is taxed at your slab rate.