TaxTMI 
Tax on Income from Securitisation Trusts - Section 221 (New) / Section 115TCA (Old)
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....e an investor in a securitisation trust receives income, or income accrues or arises to the investor, from investments made in the trust, that income is chargeable to income-tax in the same manner as if the investor had made the investments directly. Practical example: Suppose a securitisation trust earns income from its underlying investments and distributes a corresponding amount to....
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....ined under the relevant provisions of the Act. Section 221(3) - Deemed Credit of Undistributed Income Where income accrues or arises to, or is received by, the securitisation trust during a tax year but is not paid or credited to the investor, the income is deemed to have been credited to the investor's account: • On the last day of that tax year; and • In t....
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....e tax year and such other relevant particulars as may be prescribed. Section 221(5) - Prevention of Double Inclusion of Income Where income has already been included in an investor's total income for a tax year because it accrued or arose during that year, the same income must not be included again in the investor's total income for the tax year in which it is actually paid by the se....
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....r Provides for taxation of income arising to an investor from investments made in a securitisation trust as if the investor had made the investments directly. Section 221(1) provides the same underlying direct-investment basis for taxing income received by, or accruing or arising to, the investor. Nature of income Preserves the nature and proportion of income in the hands o....