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?
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A medium Economy multiple-choice question from UPSC Prelims 2023. Attempt it above, then check the correct answer and detailed explanation below.
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Correct answer: C. Statement-I is correct but Statement-II is incorrect
Interest income from InviTs is tax-exempt, but dividends are taxable. InviTs are not recognized as borrowers under the SARFAESI Act.
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