Section 115TCA of ITA, 1961 : Section 115Tca: Tax On Income From Securitization Trusts

Explanation using Example

Imagine Jane is an investor who has purchased securities from a securitisation trust. The trust invests in various financial assets and distributes the income generated from these assets to its investors, including Jane. According to Section 115TCA of the Income-tax Act, 1961, the income Jane receives from the trust should be taxed as if she had earned that income directly from the underlying assets, not as income from the trust.

For instance, if the securitisation trust earns intere...

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