Taxation of Securitisation Trusts (General Provisions) - Section 115TCA - Income Tax - Ready Reckoner - Income Tax

Taxation of Securitisation Trusts (General Provisions) - Section 115TCA (1) Investor of a securitisation trust made liable to pay tax Notwithstanding anything contained in this Act, any income accruing or arising to, or received by, a person, being an investor of a securitisation trust, out of investments made in the securitisation trust, shall be chargeable to income-tax in the same manner as if it were the income accruing or arising to, or received by, such person, had the investments by the securitisation trust been made directly by him. (2) Nature and the amount of income taxable in the hands of the investor The income paid or credited by the securitisation trust shall be deemed to be of the same nature and in the same proportion in the hands of the person referred to in section 115TCA(1) , as if it had been received by, or had accrued or arisen to, the securitisation trust during the previous year. (3) Income from securitisation trust to be tax on due basis The income accruing or arising to, or received by, the securitisation trust, during a previous year, if not paid or credited to the person referred to in section 115TCA(1) , shall be deemed to have been credited to the account of the said person on the last day of the previous year in the same proportion in which such person would have been entitled to receive the income had it been paid in the previous year. (4) Securitisation trust to furnish details of such income to the investor as well as prescribed income tax authority The person responsible for crediting or making payment of the income on behalf of securitisation trust and the securitisation trust shall furnish, within such period, as may be prescribed, to the person who is liable to tax in respect of such income and to the prescribed income-tax authority, a statement in Form No. 64E and verified in such manner, giving details of the nature of the income paid or credited during the previous year and such other relevant details, as may be prescribed under rule 12CC . (5) Income taxed on due basis, not to be taxed when it is actually received Where income has been taxable in hands of investor in the year of accrual then same shall not be taxable in the year in which trust actually paid income by the securitisation trust. Furnishing a statement of income distributed by a securitisation trust to its investor [ Section 115TCA(4) Read with Rule 12CC ] W.e.f. 01.06.2017 (1) The statement of income distributed by a securitisation trust to its investor shall be furnished to the Principal Commissioner or the Commissioner of Income-tax within whose jurisdiction the principal office of the securitisation trust is situated, by 30th day of November of the financial year following the previous year during which such income is distributed: the statement of income distributed shall also be furnished to the investor by 30th day of June of the financial year following the previous year during which the income is distributed. (2) The statement of income distributed shall be furnished under section 115TCA(4) by the securitisation trust to- (i) the Principal Commissioner or the Commissioner of Income-tax referred to in sub-rule (1), in Form No. 64E, duly verified by an accountant in the manner indicated therein and shall be furnished electronically under digital signature; (ii) the investor in Form No. 64F, duly verified by the person distributing the income on behalf of the securitisation trust in the manner indicated therein. (3) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be, shall specify the procedure for filing of Form No. 64E and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the statements so furnished. [ Inserted vide Notification No. 107/2016 - Dated 28-11-2016, w.e.f. 1st day of June, 2016 ] W.e.f. 24.02.2025 (1) The statement of income paid or credited by a securitisation trust to its investor shall be furnished by the person responsible for crediting or making payment of the income on behalf of a securitisation trust and the securitisation trust to (i) the Principal Commissioner or the Commissioner of Income-tax, as the case may be, within whose jurisdiction the principal office of the securitisation trust is situated by the 15th day of June of the financial year following the previous year during which the income is paid or credited electronically under digital signature, in Form No. 64E duly verified by an accountant in the manner indicated therein; and (ii) the investor by the 30th day of June of the financial year following the previous year during which the income is paid or credited in Form No. 64F after generating and downloading the same from the web portal specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorised by him and duly verified by the person paying or crediting the income on behalf of the securitisation trust in the manner indicated therein. (2) The Principal Director General of Income-tax (Systems) or the Director General of Income tax (Systems), as the case may be, shall specify, (i) the procedure for filing of Form No. 64E and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the statements of income paid or credited so furnished under this rule; and (ii) the procedure, formats and standards for generation and download of statement in Form No. 64F from the web portal specified by him or by the person authorised by him and he shall be responsible for the day-to-day administration in relation to the generation and download of certificates from the web portal specified by him or the person authorised by him. [ Substituted vide Notification No. 17/2025 dated 24-02-2025 ] Deduction of tax at source in respect of income payable to investor [ Refer this Chapter ] Note:- As per section 10(23DA) , any income of a securitisation trust from the activity of securitisation is exempt.