Section 194LBC - Income in respect of investment in securitisation trust - Income Tax - Ready Reckoner - Income Tax

Section 194LBC - Income in respect of investment in securitisation trust The provision of section 194LBB inserted with effect from 01.06.2016. Where any income is payable to an investor, being a resident , in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA , the person responsible for making the payment shall. Time of tax deduction - Tax deduction at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or cheque or any other mode, whichever is earlier, Rate of TDS - @ 25%, where the payee is a resident an individual or a HUF @ 30%, where the payee is resident but other than individual or a HUF @ 40 %(+SC+HEC) where the payee is foreign company @30% (+SC+HEC) where the payee is non resident, not being a foreign company. Where any income is payable to an investor, being a non-resident (not being a company) or a foreign company, in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA , the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or by cash or cheque or any other mode, whichever is earlier, deduct income-tax thereon, at the rates in force. Meaning of Securitisation trust as per explanation (d) of section 115TCA Securitisation Trust means a trust, being a- (i) special purpose distinct entity as defined in clause (u) of regulation 2(1) of the Securities and Exchange Board of India (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008 made under the Securities and Exchange Board of India Act, 1992 and the Securities Contracts (Regulation) Act, 1956, and regulated under the said regulations; or (ii) Special Purpose Vehicle as defined in, and regulated by, the guidelines on securitisation of standard assets issued by the Reserve Bank of India, or (iii) trust set-up by a securitisation company or a reconstruction company formed, for the purposes of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, or in pursuance of any guidelines or directions issued for the said purposes by the Reserve Bank of India, which fulfils such conditions, as may be prescribed.