Clause 30 - Insertion of new Chapter XII-EA-SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME BY SECURITISATION TRUSTS

Tax on distributed income by securitisation trusts creates payer liability and reporting obligations for distributions to investors.

Imposition of an additional tax on income distributed by securitisation trusts makes distributed income taxable in the hands of the trust by levy of additional income-tax at differentiated rates depending on investor class, with exemption where the recipient is not otherwise chargeable. The payer/trust must remit tax within the prescribed short period and file an annual prescribed statement detailing distributions and tax paid. Non-payment attracts simple interest for each month or part month, and the payer/trust becomes a deemed assessee in default subject to the Act's recovery provisions. Deductions in respect of taxed distributed income are disallowed.