Taxation of Investments in REITs for Individuals in Different Scenarios


KF Ace
Scenario 1:Investor: Mother with 10% Tax Slab
In this scenario, your mother, who falls under the 10% tax slab, holds a Demat Account and has invested in Real Estate Investment Trusts (REITs). The tax implications for your mother's investments in REITs will be influenced by her income tax bracket and the nature of the income generated from the REIT investments.

Scenario 2:Investor: Student with No Source of Income
In the second scenario, you, as a student with no source of income, hold a Demat Account and have invested in REITs. In this case, you are likely to have a different tax liability due to your lack of taxable income.

I want to know which scenario is Better...?


Staff member
The decision is pretty clear, Scenario 2 where the tax liability will be lower. Unless I'm misunderstanding something..