Showing FORM-64B REITs generated dividend/income in ITR

[amitsaini]

REITs issue form-64B for each financial year to its shareholder.
How to show those income in ITR?

Attached form 64b for reference for embassy REITs.
Please use the terms mentioned in form 64b for the discussion

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Conclusion from this forum:

S.No.	Description	Taxability	Where to show in ITR form
1	Amount of income in the nature of interest referred to in section 10(23FC)	Taxable as per slab	To be included in Other Source income in Schedule PTI
2	Amount of income in the nature of renting or leasing or letting referred to in section 10(23FCA)	Taxable as per slab	To be included in Income from House Property in Schedule PTI.
3	Amount of income in the nature of Dividend referred to in section 115-O	Taxable as per slab	To be included in Dividend in Other Source Income in Schedule PTI
4	Amount of other income	Exempted under 10(23FD)	Schedule PTI - Income claimed to be exempt u/s 10(23FD). Will be auto populated in Schedule EI from Schdule PTI
5	Proceeds from amortisation of debt received from SPV	Exempted under 10(23FD)	Schedule PTI - Income claimed to be exempt u/s 10(23FD). Will be auto populated in Schedule EI from Schdule PTI

 

[CAKaushik]

Hey, In Point 7 there is a table given which states breakup of amount received only amounts in Column 4, 5 and 6 are taxable. Amount in Cloumn 7 as well as Amount in Column 3 of table given on Page 2 are exempt u/s 10(23FD) of Income Tax Act, 1961.
Income in column 4, 5 and 6 are taxable at normal slab rates under the head Income from Other Sources.
Hope this helps.

 

[amitsaini]

Hey, In Point 7 there is a table given which states breakup of amount received only amounts in Column 4, 5 and 6 are taxable. Amount in Cloumn 7 as well as Amount in Column 3 of table given on Page 2 are exempt u/s 10(23FD) of Income Tax Act, 1961.
Income in column 4, 5 and 6 are taxable at normal slab rates under the head Income from Other Sources.
Hope this helps.

Thanks @CAKaushik, for simplification I created below table.
I don't agree with you on S.No 3 below, as in case of EMBASSY REIT dividend comes under exempted income. which is filled in ITR
SCHEDULE EI - Pass through income not chargeable to tax (Schedule PTI).

Feel free to correct me

S.No.	Description	Taxability	Where to show in ITR form
1	Amount of income in the nature of interest referred to in section 10(23FC)	Taxable as per slab	Schedule OS - In the nature of Pass through income/Loss
2​	Amount of income in the nature of renting or leasing or letting referred to in section 10(23FCA)	Taxable as per slab	?
3	Amount of income in the nature of Dividend referred to in section 115-O	Taxable as per slab	?
4	Amount of other income	Exempted under 10(23FD)	?
5	Proceeds from amortisation of debt received from SPV	Exempted under 10(23FD)	?

 

[CAKaushik]

Yes you are correct Dividend income is exempt but in the hands of Embassy REIT, not in your Hands.
Understand, REIT's have Investment in Companies known as Special Purpose Vehicle (SPV). These SPV in turn hold properties that generate rental income. SPV distribute those Incomes to REITs in form of Dividend.
When REIT's receive dividend from these SPV then these are exempt in hands of REIT because REIT will distribute those dividends to you (Unitholder) and eventually those dividends will be taxable in your hands. So, to avoid double taxation on dividend they have been exempted in hands of REIT.

S.No.	Description	Taxability	Where to show in ITR form
1	Amount of income in the nature of interest referred to in section 10(23FC)	Taxable as per slab	To be included in Other Source income in Schedule PTI
2	Amount of income in the nature of renting or leasing or letting referred to in section 10(23FCA)	Taxable as per slab	To be included in Income from House Property in Schedule PTI.
3	Amount of income in the nature of Dividend referred to in section 115-O	Taxable as per slab	To be included in Dividend in Other Source Income in Schedule PTI
4	Amount of other income	Exempted under 10(23FD)	Schedule PTI - Income claimed to be exempt u/s 10(23FD). Will be auto populated in Schedule EI from Schdule PTI
5	Proceeds from amortisation of debt received from SPV	Exempted under 10(23FD)	Schedule PTI - Income claimed to be exempt u/s 10(23FD). Will be auto populated in Schedule EI from Schdule PTI

Hope this helps.

 

[amitsaini]

Yes you are correct Dividend income is exempt but in the hands of Embassy REIT, not in your Hands.
Understand, REIT's have Investment in Companies known as Special Purpose Vehicle (SPV). These SPV in turn hold properties that generate rental income. SPV distribute those Incomes to REITs in form of Dividend.
When REIT's receive dividend from these SPV then these are exempt in hands of REIT because REIT will distribute those dividends to you (Unitholder) and eventually those dividends will be taxable in your hands. So, to avoid double taxation on dividend they have been exempted in hands of REIT.

S.No.	Description	Taxability	Where to show in ITR form
1	Amount of income in the nature of interest referred to in section 10(23FC)	Taxable as per slab	To be included in Other Source income in Schedule PTI
2	Amount of income in the nature of renting or leasing or letting referred to in section 10(23FCA)	Taxable as per slab	To be included in Income from House Property in Schedule PTI.
3	Amount of income in the nature of Dividend referred to in section 115-O	Taxable as per slab	To be included in Dividend in Other Source Income in Schedule PTI
4	Amount of other income	Exempted under 10(23FD)	Schedule PTI - Income claimed to be exempt u/s 10(23FD). Will be auto populated in Schedule EI from Schdule PTI
5	Proceeds from amortisation of debt received from SPV	Exempted under 10(23FD)	Schedule PTI - Income claimed to be exempt u/s 10(23FD). Will be auto populated in Schedule EI from Schdule PTI

Hope this helps.

A Great thanks to @CAKaushik !!!
For a normal person its very difficult to find such details on any youtube channel.