Business Trust (REIT/InvIT) – Section 2(21) | Income-tax Act, 2025 vs 1961

§ 2(21) · Income-tax Act, 2025

Business trust

ITA 2025 · 2(21) ITA 1961 · 2(13A)
Definition — Section 2(21)

Means a trust registered as — (a) an Infrastructure Investment Trust under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 made under the SEBI Act, 1992; or (b) a Real Estate Investment Trust under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 made under the SEBI Act, 1992. Both categories require SEBI registration to qualify as a business trust for income tax purposes.

Act Comparison
Income-tax Act, 2025
2(21)
Business trust
Income-tax Act, 1961
2(13A)
Business trust
Key Points
  • Maps to Section 2(13A) of the 1961 Act
  • REITs and InvITs have a special tax pass-through regime
  • Distributions to unit holders are taxed at unit holder level based on nature of income
💡 Practical Note

Business trusts are a popular investment vehicle — REIT distributions can have components of interest, dividend, or rental income each taxed differently.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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