Insertion of new section 115TCA

Section 61 of the Finance Act, 2016 deals with insertion of new section 115TCA. Insertion of new section 115TCA. 61. After section 115TC of the Income-tax Act and before the Explanation occurring after the said section, the following section shall be inserted with effect from the 1st day of April, 2017, namely:— "115TCA. The Act was enacted on 27 Jun 2016.

Insertion of new section 115TCA.

61. After section 115TC of the Income-tax Act and before the Explanation occurring after the said section, the following section shall be inserted with effect from the 1st day of April, 2017, namely:—

"115TCA. Tax on income from securitisation trusts.—(1) 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) 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 sub-section (1), as if it had been received by, or had accrued or arisen to, the securitisation trust during the previous year.

(3) 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 sub-section (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) 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 such form 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.

(5) Any income which has been included in the total income of the person referred to in sub-section (1), in a previous year, on account of it having accrued or arisen in the said previous year, shall not be included in the total income of such person in the previous year in which such income is actually paid to him by the securitisation trust.".

Section 61, The Finance Act, 2016.