Explanation
Section 194LBC of IT Act 1961 (consolidated under §393 in IT Act 2025) applies to securitisation trusts (special purpose vehicles used in asset-backed securities, mortgage-backed securities). Income distributed to investors: 25% TDS for individual/HUF investors, 30% for other investors (companies, firms, LLPs). For non-residents, DTAA rates apply. Securitisation trust income is a pass-through to investors — investors declare the gross income and claim credit for TDS. Verify on the income-tax portal before filing.
Related terms and sections
Confidence: medium. Verify against primary sources (incometaxindia.gov.in, cbic-gst.gov.in, mca.gov.in) before filing.