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

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.... tax and such securitisation trust shall be liable to pay additional income-tax on such distributed income at the rate of--      (i) twenty-five per cent. on income distributed to any person being an individual or a Hindu undivided family;      (ii) thirty per cent. on income distributed to any other person: Provided that nothing contained in this sub-section shall apply in respect of any income distributed by the securitisation trust to any person in whose case income, irrespective of its nature and source, is not chargeable to tax under the Act. (2) The person responsible for making payment of the income distributed by the securitization trust shall be liable to pay tax to the credit of ....

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....ing payment of the income distributed by the securitisation trust and the securitisation trust does not pay tax, as referred to in sub-section (1) of section 115TA, then, he or it shall be deemed to be an assessee in default in respect of the amount of tax payable by him or it and all the provisions of this Act for the collection and recovery of income-tax shall apply.       Explanation.--For the purposes of this Chapter,--      (a) "investor" means a person who is holder of any securitised debt instrument or securities issued by the securitisation trust;      (b) "securities" means debt securities issued by a Special Purpose Vehicle as referred to in the guidelines o....

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.... distributed income by securitisation trusts.     The provisions of the proposed new section 115TA provide that notwithstanding anything contained in any other provisions  of the Act any distributed income to an investor by a securitization trust shall be liable to the levy of additional income-tax at the rate of twenty-five per cent. on the distributed income if such income is paid to a person being an individual or Hindu undivided family. The additional income-tax shall be  levied at the rate of thirty per cent., if such distributed income is paid to a person other than individual and Hindu undivided family. No additional income-tax shall be levied, if the distributed income is paid to any person who is ex....