Chapter XII-EA: Special provisions relating to tax on distributed income by Securitisation Trusts - Section 115TA - Income Tax - Ready Reckoner - Income Tax

Chapter XII-EA : Special provisions relating to tax on distributed income by Securitisation Trusts - Section 115TA [Applicable upto 31st May, 2016] Tax on distributed income to Investors Notwithstanding anything contained in any other provisions of the Income Tax Act, any amount of income distributed by the securitisation trust to its investors shall be chargeable to tax and such securitisation trust shall be liable to pay additional income-tax on such distributed income at the rate of- 25% on income distributed to any person being an individual or a Hindu undivided family; 30% on income distributed to any other person: Provided that nothing contained in this sub-section shall apply in respect of any income distributed by the securitisation trust to any person in whose case income, irrespective of its nature and source, is not chargeable to tax under the Income Tax Act. [Therefore, no tax if income distributed to a Mutual fund whose income is exempt under section 10(23D) .] The person responsible for making payment of the income distributed by the securitisation trust shall be liable to pay tax to the credit of the Central Government within 14 days from the date of distribution or payment of such income, whichever is earlier. No deduction under any other provisions of the Income Tax Act shall be allowed to the securitisation trust in respect of the income which has been charged to tax under section 115TA(1). Nothing contained in this section shall apply in respect of any income distributed by a securitisation trust to its investors on or after 1-6-2016.