In a recent notification No. 46/2016 dated June 17th, 2016 issued by Central Board of Direct Taxes, Ministry of Finance has notified that no deduction of Tax under Chapter XVII of the said Act shall be made on the payments of the nature specified in clause (23DA) of section 10 of the said Act received by any securitization trust as defined in clause (d) of the Explanation to section 115TC of the said Act.
Section 10 Clause (23DA) reads as follows; any income of a securitization trust from the activity of securitization.
Explanation.—For the purposes of this clause,—
(a) “securitization” shall have the same meaning as assigned to it,—
(i) in clause (r) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or
(ii) under the guidelines on the securitization of standard assets issued by the Reserve Bank of India;
(b) “securitization trust” shall have the meaning assigned to it in the Explanation below section 115TC;
Read the full text of the notification here.
