Correct Option (d)
Statement-I is incorrect. Interest income distributed by Infrastructure Investment Trusts (InvITs) to their investors is generally taxable. Conversely, dividend income distributed by InvITs can be exempt from tax for investors under specific conditions, such as when the InvIT has not opted for a concessional tax regime and has already paid corporate tax on its income. If the InvIT opts for a concessional tax regime, the dividend income becomes taxable for unitholders. Therefore, the statement that interest income is exempted while dividend is taxable is not universally accurate.
Statement-II is correct. The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, was amended to include Infrastructure Investment Trusts (InvITs) within the definition of 'borrowers'. This provision enables lenders to enforce security interests against assets held by InvITs in case of default, thereby providing a robust debt recovery mechanism and enhancing investor confidence in infrastructure financing.
Incorrect Options
Options (a), (b), and (c) are incorrect because Statement-I is factually inaccurate.