“We commend the Finance Minister for presenting a forward-thinking budget that promises to stimulate the economy and create employment opportunities. The various measures and initiatives announced will significantly support the growth of the infrastructure and real estate sectors. We especially welcome the decision to reduce the holding period for determining long-term capital gains for business trusts from 36 months to 12 months. This change addresses a long-standing industry request and enhances liquidity in Indian REITs, making them more effective investment instruments. Previously, investors were required to hold units of business trusts for 36 months to qualify for the long-term capital gains tax rate. This extended holding period often acted as a barrier to investment flexibility and liquidity, particularly in the real estate sector. By shortening the holding period to just 12 months, the Union Budget fosters a more agile investment environment.”
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