Infra Income
InvITs (Infrastructure Investment Trusts)
Verified Indian financial mathematics, statutory regulations, and step-by-step actionable breakdowns.
Expected Yield8% - 11% distribution yield
Lock-In TenureNone
Risk LevelModerate Risk
Tax StatusTaxable as Slab
Overview & Statutory Background
InvITs pool completed, revenue-generating infrastructure assets such as toll roads and power transmission lines. SEBI rules require at least 90% of net distributable cash flows to be distributed to unit holders.
Key Features & Operational Guidelines
Listed on stock exchanges
Cash-flow backed by long-term concession or tariff contracts
Quarterly distributions
Professional sponsor and manager structure
Who is Eligible to Invest?
- •Any investor with a demat account
Indian Taxation Breakdown
| Stage | Tax Treatment |
|---|---|
| Initial Investment | No deduction. |
| Interest & Returns | Distribution split into interest, dividend and return-of-capital components with different tax treatment. |
| Maturity / Withdrawal | Gains taxed under capital-gains rules on sale. |
Advantages & Limitations
Key Advantages (Pros)
- ✓High distribution yield
- ✓Real asset backing
- ✓Portfolio diversification
Important Limitations (Cons)
- ✕Traffic or tariff risk
- ✕Debt-heavy structures
- ✕Lower liquidity than large-cap stocks
InvITs (Infrastructure Investment Trusts) FAQs
No. Distributions depend on asset cash flows and can change if traffic or tariffs fall short.
Calculate Compound Returns
Use our interactive calculators to simulate exact growth schedules for this asset.