Tax on distributed income by securitisation trusts requires trusts to withhold, pay tax, and report distributions annually. A new Chapter XII-EA charges tax on income distributed by a securitisation trust to investors, with the trust liable for additional income-tax at ... Summary
Tax on distributed income by securitisation trusts requires trusts to withhold, pay tax, and report distributions annually.
A new Chapter XII-EA charges tax on income distributed by a securitisation trust to investors, with the trust liable for additional income-tax at specified rates and no deduction allowed for such income. The person making the distribution must pay the tax within fourteen days and furnish an annual statement by 15 September. Interest at 1% per month applies for late payment, and failure to pay renders the distributor and the trust assessees in default. Key terms-investor, securities, securitised debt instrument, securitisation trust-are defined by reference to securities regulations and RBI guidelines.
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