REITs set to gain tax flexibility, cash flow boost under new Bill

•The Taxation and Other Laws (Amendment) Bill, 2026, allows REIT SPVs to opt for a lower tax rate and avoid Minimum Alternate Tax (MAT).

•REIT SPVs can now use accumulated MAT credits, subject to final provisions, to reduce cash taxes.

•The changes aim to strengthen tax neutrality of REITs and improve distributable cash flows by reducing cash taxes at the SPV level.

•The Bill now moves to the Rajya Sabha for approval before taking effect.