Distribution

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Income tax will be deducted as per the provisions of section 194LBA of Indian income-tax Act, 1961 ('the Act') by Mindspace Business Parks REIT ('MREIT') on distribution to its Unitholders. As it is important for MREIT to receive the relevant information from Unitholders to determine the rate of tax deduction on Distribution, we have sent out communications to Unitholders as per the classification given below
(please click below hyperlink for details):

Resident Unitholders

Non-Resident Unitholders – Individual

Non-Resident Unitholders – Others

No TDS shall be deducted on distribution in the form of dividend as none of the Special Purpose Vehicles of MREIT have opted for the beneficial tax regime under section 115BAA of the Act. However, TDS shall be deducted on distribution in the form of interest as per the provisions of section 194LBA of the Act.

The category-wise applicable rate of TDS on distribution in the form of interest for financial year 2021-22 is summarised in table below:

A. Resident Unitholders
Category of Unitholder (Residents) Withholding Tax Rate
Individuals 10%
HUF 10%
Company/ Firm /LLP 10%
Trust / Association of persons/ Body of Individuals 10%
Alternate Investment Fund – Category III 10%
Exempt Categories:
Alternate Investment Fund – Category I & II
Central Government vide CBDT notification No.51/2015 dated 25th June 2015 has granted TDS exemption on all incomes other than business profits received by Category I and II AIFs
NIL
(subject to registration certificate / notification as AIF Category I or II)
Mutual Fund
As per section 196 of the Income-tax Act, TDS is not required to be deducted on interest payment on securities owned by mutual funds specified under section 10(23D) of the Act.
Section 10(23D) of the Act provides exemption from tax for any income earned by a Mutual Fund registered under the SEBI Act, 1992 or set up by a public sector bank or a public financial institution or authorized by the Reserve Bank of India.
NIL
(subject to registration certificate from SEBI or RBI or other relevant authority)
Corporation established by or under a Central Act which is exempt from income-tax on its income
As per section 196 of the Income-tax Act, TDS is not required to be deducted on interest payment on securities owned by a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income.
NIL
(subject to registration certificate from relevant authority)
B. Non-Resident Unitholders – Individual and Others

The rate of TDS for Non-Resident Unitholders is 5% (plus applicable surcharge and cess) as per the Act. Surcharge rate varies depending upon the category of Non-Resident Unitholder and the taxable income for the relevant financial year (i.e. FY 2021-22).

Category of Unitholder (including FPIs and FIIs) Taxable Income of the Non-Resident Unitholder

Effective Withholding Tax Rate (including surcharge and cess)
Individuals, Trusts, Body of individuals, Association of persons
  • Upto INR 50 lakhs
  • Exceeds INR 50 lakhs but does not exceed INR 1 crore
  • Exceeds INR 1 crore but does not exceed INR 2 crore
  • Exceeds INR 2 crore but does not exceed INR 5 crore
  • Exceeds INR 5 crore
  • 5.20%
  • 5.72%
  • 5.98%
  • 6.50%
  • 7.124%
  • Firm (including LLP)
  • Upto INR 1 crore
  • Exceeds INR 1 crore
  • 5.20%
  • 5.82%
  • Company
  • Upto INR 1 crore
  • Exceeds INR 1 crore but does not exceed INR 10 crore
  • Exceeds INR 10 crore
  • 5.20%
  • 5.30%
  • 5.46%

  • Disclaimer
    The information provided in this document sets out the withholding tax applicable to the Unitholders on distributions for financial year 2021-22 in a summary manner only and is not a complete analysis of tax implications arising in the hands of the Unitholders. It is not exhaustive or comprehensive and does not and should not be deemed to constitute legal, financial or tax advice. Investors are advised to consult their own consultants with respect to the tax implications/consequences.

    For any further tax related questions, an e-mail can be sent to the following e-mail address reitcompliance@mindspacereit.com.

    Income tax will be deducted as per the provisions of section 194LBA of Indian income-tax Act, 1961 ('the Act') by Mindspace Business Parks REIT ('MREIT') on distribution to its Unitholders. As it is important for MREIT to receive the relevant information from Unitholders to determine the rate of tax deduction on Distribution, we have sent out communications to Unitholders as per the classification given below
    (please click below hyperlink for details):

    Resident Unitholders

    Non-Resident Unitholders – Individual

    Non-Resident Unitholders – Others

    No TDS shall be deducted on distribution in the form of dividend as none of the Special Purpose Vehicles of MREIT have opted for the beneficial tax regime under section 115BAA of the Act. However, TDS shall be deducted on distribution in the form of interest as per the provisions of section 194LBA of the Act.

    The category-wise applicable rate of TDS on distribution in the form of interest for financial year 2020-21 is summarised in table below:

    A. Resident Unitholders
    Category of Unitholder (Residents) Withholding Tax Rate
    Individuals 7.50%
    HUF 7.50%
    Company/ Firm /LLP 7.50%
    Trust / Association of persons/ Body of Individuals 7.50%
    Alternate Investment Fund – Category III 7.50%
    Exempt Categories:
    Alternate Investment Fund – Category I & II
    Central Government vide CBDT notification No.51/2015 dated 25th June 2015 has granted TDS exemption on all incomes other than business profits received by Category I and II AIFs
    NIL
    (subject to registration certificate / notification as AIF Category I or II)
    Mutual Fund
    As per section 196 of the Income-tax Act, TDS is not required to be deducted on interest payment on securities owned by mutual funds specified under section 10(23D) of the Act.
    Section 10(23D) of the Act provides exemption from tax for any income earned by a Mutual Fund registered under the SEBI Act, 1992 or set up by a public sector bank or a public financial institution or authorized by the Reserve Bank of India.
    NIL
    (subject to registration certificate from SEBI or RBI or other relevant authority)
    Corporation established by or under a Central Act which is exempt from income-tax on its income
    As per section 196 of the Income-tax Act, TDS is not required to be deducted on interest payment on securities owned by a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income.
    NIL
    (subject to registration certificate from relevant authority)
    B. Non-Resident Unitholders – Individual and Others

    The rate of TDS for Non-Resident Unitholders is 5% (plus applicable surcharge and cess) as per the Act. Surcharge rate varies depending upon the category of Non-Resident Unitholder and the taxable income for the relevant financial year (i.e. FY 2020-21).

    Category of Unitholder (including FPIs and FIIs) Taxable Income of the Non-Resident Unitholder

    Effective Withholding Tax Rate (including surcharge and cess)
    Individuals, Trusts, Body of individuals, Association of persons
  • Upto INR 50 lakhs
  • Exceeds INR 50 lakhs but does not exceed INR 1 crore
  • Exceeds INR 1 crore but does not exceed INR 2 crore
  • Exceeds INR 2 crore but does not exceed INR 5 crore
  • Exceeds INR 5 crore
  • 5.20%
  • 5.72%
  • 5.98%
  • 6.50%
  • 7.124%
  • Firm (including LLP)
  • Upto INR 1 crore
  • Exceeds INR 1 crore
  • 5.20%
  • 5.82%
  • Company
  • Upto INR 1 crore
  • Exceeds INR 1 crore but does not exceed INR 10 crore
  • Exceeds INR 10 crore
  • 5.20%
  • 5.30%
  • 5.46%

  • Disclaimer
    The information provided in this document sets out the withholding tax applicable to the Unitholders on distributions for financial year 2020-21 in a summary manner only and is not a complete analysis of tax implications arising in the hands of the Unitholders. It is not exhaustive or comprehensive and does not and should not be deemed to constitute legal, financial or tax advice. Investors are advised to consult their own consultants with respect to the tax implications/consequences.

    For any further tax related questions, an e-mail can be sent to the following e-mail address reitcompliance@mindspacereit.com.

    Select

      Q1 Q2 Q3 Q4
    Declaration Date - - 10 Feb 21 -
    Record Date - - 18 Feb 21 -
    Payment Date - - On or before 25 Feb 21 -
    Distribution Per Unit (INR) - - 4.78 -
    Interest Per Unit (INR) - - 0.53 -
    Dividend (INR) - - 4.25 -
    Total Distribution till date in FY21     4.78