Dividends sourced from SPVs that are under the new tax regime are taxable at the slab rate for the investor, but dividends from SPVs under the old regime are tax-exempt. More importantly, these rules force many REITs and InvITs to avoid moving their SPVs to the new tax regime. Two, SPVs shifting to the new tax regime can boost their own cash flows available for distribution. This tax treatment requires the investor to be aware of the REIT or InvIT’s income sources and keep track of its distribution history, to pay his taxes correctly. Moving REITs and InvITs to a simpler tax regime like other financial instruments is a necessary step to popularising them.