Securitisation trust tax default rules deem unpaid distribution-tax obligations recoverable from the trust or responsible payer.

Section 115TC treated a securitisation trust and the person responsible for paying distributed income as an assessee in default if tax payable on distributed income remained unpaid, permitting income-tax collection and recovery. The provision, applicable up to 31 May 2016, has been classified as redundant under the Income-tax Act, 2025, without a corresponding provision. Investor-received distributed income was exempt under section 10(35A), subject to taxation in the investor's hands under section 115TCA.

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