Calculate REIT and InvIT tax in India for Tax Year 2026-27. Use Form 77 to estimate taxable income, 4% cess, resident TDS and balance tax.
A REIT / InvIT Tax Calculator helps Indian investors estimate tax on income distributed by a Real Estate Investment Trust (REIT) or Infrastructure Investment Trust (InvIT). It separates interest, qualifying dividend and direct REIT rental distributions instead of treating every rupee of a payout as taxable.
The tool suits retail investors, HNIs, NRIs checking the Indian tax position, and CAs preparing a quick working estimate. The Income-tax Act, 2025 defines a business trust as a registered REIT or InvIT under the relevant SEBI regulations. Income-tax Act, 2025, Section 2(21)
Section 223 keeps the nature and proportion of business-trust income when it reaches the unit holder. Schedule V then determines which distributed income remains exempt and which component stays taxable. Income-tax Act, 2025, Section 223
For the current Tax Year 2026-27, use the amounts reported in Form 77 and calculate the taxable distribution as:
Taxable distribution
= Interest distribution
+ Dividend where the SPV has exercised the Section 200 option
+ Direct REIT rental / leasing / letting distribution
Form 77 separates these categories and also shows dividend where the SPV has not exercised the Section 200 option, along with other income and Section 92(2)(k) amounts. Form 77 — Unit-holder statement
A dividend where the SPV has not exercised the Section 200 option is not added to this calculator's taxable distribution under the current Schedule V framework. The Income Tax Department's August 2026 FAQ separately describes a later proposal to exempt dividends even where the SPV exercises the option, so that proposal is not treated as current law here. CBDT FAQ on the 2026 amendment proposal
For a resident unit holder, the calculator then uses the marginal rate entered by you:
Estimated income tax
= Taxable distribution × Applicable marginal tax rate
Health & education cess
= Income tax × 4%
Estimated tax including cess
= Income tax + Health & education cess
The 4% cess applies to income-tax and applicable surcharge. This calculator does not collect surcharge or rebate inputs, so its result is a marginal-rate estimate rather than a full return-level tax computation. Income-tax Act, 2025, Section 3
Section 393 provides 10% TDS for resident unit holders on covered business-trust distributions under Schedule V Table 3 and Table 4, with a nil threshold. Section 393 — Tax deducted at source
Other distributions are not automatically taxable. Check Form 77 before entering figures. Form 77
Suresh receives these amounts from a REIT during Tax Year 2026-27:
The other distribution is not added to the taxable amount by this calculator. Suresh's taxable distribution is:
₹30,000 + ₹20,000 + ₹40,000
= ₹90,000
Suresh enters a 20% marginal tax rate.
Estimated income tax
= ₹90,000 × 20%
= ₹18,000
Health & education cess
= ₹18,000 × 4%
= ₹720
Estimated tax including cess
= ₹18,000 + ₹720
= ₹18,720
At a 10% resident TDS rate, the estimated TDS is:
TDS
= ₹90,000 × 10%
= ₹9,000
Estimated balance
= ₹18,720 − ₹9,000
= ₹9,720
The ₹9,720 figure is a working estimate. Your final liability depends on total income, applicable slab or special rate, rebate, surcharge, cess and other return-level adjustments.
The calculator does not compute capital gains on a sale of REIT or InvIT units. Use the purchase cost, sale value and holding period for a separate capital-gains calculation.
The Income-tax Act, 2025 applies from 1 April 2026. It defines a business trust as an InvIT or REIT registered under the relevant SEBI regulations. Income-tax Act, 2025
Section 223 provides the business-trust pass-through framework. Distributed income keeps its nature and proportion in the unit holder's hands, while Schedule V identifies the exempt and taxable components. Section 223
Form 77 gives the unit holder separate figures for interest, rent or leasing, dividend where the SPV exercised the Section 200 option, dividend where it did not, other income and Section 92(2)(k) amounts. Use that statement rather than the total cash distribution alone. Form 77
For resident unit holders, Section 393 specifies 10% TDS on covered distributed business-trust income under Schedule V Table 3 and Table 4. The same section also contains conditions where TDS is not deducted, including certain dividend and direct-REIT-rent situations. Section 393
The Income Tax Department's August 2026 FAQ says an amendment was proposed to exempt business-trust dividends even where the SPV exercised the Section 200 option. The current Act text used for this calculator still contains the existing Schedule V condition, so the calculator follows the current Act rather than the proposal. CBDT FAQ on the 2026 amendment proposal
Health and education cess remains 4% of income-tax plus applicable surcharge for Tax Year 2026-27. This calculator applies 4% to the entered-rate tax because it does not collect surcharge separately. Income-tax Act, 2025, Section 3
Read Form 77 before entering amounts. The category matters. Form 77
Taxable REIT distributions can form part of a unit holder's income. Section 223 keeps the income character when it passes through the business trust, while Schedule V determines the exempt portion. Interest and direct REIT rental income can therefore be taxable. Check Form 77 before treating the full cash payout as taxable income.
InvIT income can be taxable when the distribution falls within a taxable pass-through category. Section 223 preserves the nature of distributed income, and Form 77 separates the reported components. Use the interest and qualifying dividend amounts shown in the statement. Don't add other distributions automatically without checking their tax treatment.
For resident unit holders, Section 393 provides a 10% TDS rate on covered business-trust distributions under Schedule V Table 3 and Table 4, with a nil threshold. The section also contains no-deduction conditions. TDS remains a credit, so a 10% deduction does not set your final income-tax rate.
Direct REIT renting, leasing or letting income has its own category under Schedule V Table 4. Section 223 treats qualifying distributed income as the unit holder's income for the tax year. Enter the amount reported in Form 77. Don't combine it with an InvIT distribution or with capital gains from selling units.
No. A unit sale needs a separate capital-gains calculation. You need the purchase cost, sale consideration, transfer expenses, holding period and the applicable capital-gains provision. This calculator only estimates tax on covered business-trust distributions and the related resident TDS credit.
An NRI can use the distribution fields as a working estimate, but the resident TDS setting does not represent the non-resident rules. Section 393 contains separate rates for non-resident unit holders, and treaty provisions can also matter. Check your residence status and applicable DTAA before using the result for a return.
No. TDS is tax withheld during the year and credited against the final liability. Your final calculation depends on total taxable income and the applicable tax rate, rebate, surcharge and cess. This calculator uses an entered marginal rate, so it does not replace a complete return-level computation.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
For informational purposes only. Results are estimates based on the inputs you provide and the rules in effect for the period shown, and are not tax, legal or financial advice. Verify figures against the relevant official source and consult a qualified professional before acting on them. Accuracy & limitations
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