CHAPTER XVII
COLLECTION AND RECOVERY OF TAX
Income in respect of investment in securitization trust.
194LBC. (1) Where any income is payable to an investor, being a resident, in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon, 1. [at the rate of ten per cent.” ]
(2) Where any income is payable to an investor, being a non-resident (not being a company) or a foreign company, in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon, at the rates in force.
Explanation.—For the purposes of this section,—
(a) "investor" shall have the meaning assigned to it in clause (a) of the Explanation occurring after section 115TCA;
(b) where any income as aforesaid is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be the credit of such income to the account of the payee, and the provisions of this section shall apply accordingly.]
Notes
1. Substituted by The Finance Act, 2025 dated 29.03.2025.
sub section(1) for the word
at the rate of—
(i) twenty-five per cent, if the payee is an individual or a Hindu undivided family;
(ii) thirty per cent, if the payee is any other person
shall be substituted
at the rate of ten per cent.”