Section 115TA of Income Tax Act for AY 2023-24

Section 115TA of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Tax on distributed income to investors.

Amended and updated notes on section 115TA of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Tax on distributed income to investors.

Chapter XIIEA (Sections 115TA to 115TCA) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to tax on distributed income by securitisation trusts. Section 115TA of IT Act 1961-2023 provides for tax on distributed income to investors.

Recently, we have discussed in detail section 115T (Unit Trust of India or Mutual Fund to be an assessee in default) of IT Act 1961. Today, we learn the provisions of section 115TA of Income-tax Act 1961. The amended provision of section 115TA is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 115TA of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-115TA: Tax on distributed income to investors

Section 115TA(1) of Income Tax Act

Notwithstanding anything contained in any other provisions of the Act, any amount of income distributed by the securitisation trust to its investors shall be chargeable to tax and such securitisation trust shall be liable to pay additional income-tax on such distributed income at the rate of—

  • (i) twenty-five per cent on income distributed to any person being an individual or a Hindu undivided family;
  • (ii) thirty per cent on income distributed to any other person:

Provided that nothing contained in this sub-section shall apply in respect of any income distributed by the securitisation trust to any person in whose case income, irrespective of its nature and source, is not chargeable to tax under the Act.

Section 115TA(2) of Income Tax Act

The person responsible for making payment of the income distributed by the securitisation trust shall be liable to pay tax to the credit of the Central Government within fourteen days from the date of distribution or payment of such income, whichever is earlier.

(3) [Omitted]

Section 115TA(4) of Income Tax Act

No deduction under any other provisions of this Act shall be allowed to the securitisation trust in respect of the income which has been charged to tax under sub-section (1).

Section 115TA(5) of Income Tax Act

Nothing contained in this section shall apply in respect of any income distributed by a securitisation trust to its investors on or after the 1st day of June, 2016.


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