The following are standalone multiple-choice questions.

CA Final · Direct Tax Laws and International Taxation · MTP · November 2026
The following are standalone multiple-choice questions.
(A) The rental income is taxable at the maximum marginal rate in the hands of the business trust and exempt in the hands of unit holders.
(B) The rental income is exempt in the hands of the REIT under section 10(23FCA).
(C) The rental income is taxable at 20% in the hands of the REIT.
(D) The rental income is exempt both in the hands of the REIT and unit holders and no TDS is applicable.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

The rental income is exempt in the hands of the REIT under section 10(23FCA).
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