As per Section 2(13A) of the Income Tax Act, 1961, unless the context otherwise requires, the term ‘business trust’ means a trust registered as;
(i) an Infrastructure Investment Trust under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); or
(ii) a Real Estate Investment Trust under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992).
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“Business Trust” is a legal form of separate organizational structure used for asset management by corporates and other organizations to manage their assets, like Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Such trusts are required to be registered with SEBI for taking advantage of certain deductions, exemptions, etc. allowed under the Income Tax.
This tool is used for separation of ownership, wherein a Trustee is responsible for the management and control of assets, like shares, immovable property, securities and other properties.