Taxation of Securitisation Trusts (General Provisions) - Section 115TCA - Income Tax - Ready Reckoner - Income Tax

Taxation of Securitisation Trusts (General Provisions) - Section 115TCA (1) Investor of a securitisation trust made liable to pay tax Notwithstanding anything contained in this Act, any income accruing or arising to, or received by, a person, being an investor of a securitisation trust, out of investments made in the securitisation trust, shall be chargeable to income-tax in the same manner as if it were the income accruing or arising to, or received by, such person, had the investments by the securitisation trust been made directly by him. (2) Nature and the amount of income taxable in the hands of the investor The income paid or credited by the securitisation trust shall be deemed to be of the same nature and in the same proportion in the hands of the person referred to in section 115TCA(1) , as if it had been received by, or had accrued or arisen to, the securitisation trust during the previous year. (3) Income from 'securitisation trust' to be tax on due basis The income accruing or arising to, or received by, the securitisation trust, during a previous year, if not paid or credited to the person referred to in section 115TCA(1) , shall be deemed to have been credited to the account of the said person on the last day of the previous year in the same proportion in which such person would have been entitled to receive the income had it been paid in the previous year. (4) Securitisation trust to furnish details of such income to the investor as well as prescribed income tax authority The person responsible for crediting or making payment of the income on behalf of securitisation trust and the securitisation trust shall furnish, within such period, as may be prescribed, to the person who is liable to tax in respect of such income and to the prescribed income-tax authority, a statement in such form and verified in such manner, giving details of the nature of the income paid or credited during the previous year and such other relevant details to unit holder/investor upto 30th June of the FY following the PY and Income Tax Authority (CIT/PCIT) upto 30th November of the FY following the PY. (5) Income taxed on due basis, not to be taxed when it is actually received Where income has been taxable in hands of investor in the year of accrual then same shall not be taxable in the year in which trust actually paid income by the securitisation trust. Note:- As per section 10(23DA) , any income of a securitisation trust from the activity of securitisation is exempt.