UPSC 2023: Consider the following statements: Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable. Statement-II: InvITs are recognized as borrowers under the 'Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002'. Which one of the following is correct in respect of the above statements?

The correct answer is option (d): Statement-I is incorrect but Statement-II is correct. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.

This question was asked in UPSC CSE Prelims 2023, GS Paper 1, as Question 21. It falls under Indian Economy > Financial Markets & Capital Markets.

This question is rated "difficult". It is a challenging question that demands deep subject knowledge and analytical thinking.

UPSC has asked 35 questions from Financial Markets & Capital Markets (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.