Attempt this previous-year question. The correct option stays hidden until you choose.
Consider the following statements:
Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable.
Statement-II: InvITs are recognized as borrowers under the 'Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002'.
Which one of the following is correct in respect of the above statements?
Pick an option to check yourself.
• Correct Answer: D
• Statement-I is incorrect: both interest and dividend distributions from InvITs are taxable in the hands of unit holders under the Finance Act, 2023.
• Statement-II is correct: InvITs are recognized as borrowers under the SARFAESI Act, 2002, enabling lender recovery proceedings.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
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