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REIT/InvIT income in ITR: How to report different payout types
REIT/InvIT payouts include interest, dividends, rental income and capital repayment, each taxed differently. Here is how to report each component in the correct ITR form.
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Taxpayers have four days before the 31 July deadline to submit income tax returns. Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) pay regular income, but the tax treatment varies by component. That makes accurate reporting on the right ITR form essential.
Not every payout is taxed the same way. Distributions can include interest, dividends, rental income, capital repayment, or a mix of these. Investors must review the trust's distribution statement before filing, because an error on one component can throw off the entire calculation.
The choice of ITR form depends on income profile and past tax history. Investors with only investment income may use ITR-1 if they meet the prescribed conditions. Cases involving capital gains from the sale of REIT or InvIT units generally require ITR-2. Individuals with professional or business income typically file ITR-3.