Definition of ‘Business Trust’ – Income Tax

As per S.2(13A) of the Income Tax Act, 1961, unless the context otherwise requires, the term “business trust” means a trust registered as an Infrastructure Investment Trust or a Real Estate Investment Trust, the units of which are required to be listed on a recognised stock exchange, in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 and notified by the Central Government in this behalf.

Existing S.2(13A) substituted by the Finance Act, 2015, w.e.f. 1-4-2016, as under:

The term “business trust” under S.2(13A) of the Income Tax 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; 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, and

the units of which are required to be listed on recognised stock exchange in accordance with the aforesaid regulations.