New Delhi, Aug. 11 -- Real Estate Investment Trusts (REITs) and their unit holders could benefit from greater tax flexibility, improved capital allocation and enhanced cash-flow visibility following amendments proposed under the Taxation and Other Laws (Amendment) Bill, 2026, passed by both Houses of Parliament.

A key proposal in the Bill seeks to remove the restriction on dividend exemption for a unit holder of a business trust where the special purpose vehicle (SPV) has opted for the new tax regime.

The amendment proposes the omission of a provision that currently restricts exemption on dividend income received by a unit holder to the extent it represents dividend received or receivable by a business trust from its SPV, where the SPV ...