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Annual Information Statement (AIS) – Income from investment in securitization trust

The income tax department of India, recently, announced and made available a new Annual Information Statement on its compliance portal. Various additional information like interest; securities transactions; dividend; mutual fund transaction; foreign remittance etc. will be covered under the Annual Information Statement.

Once the Annual Information Statement is fully validated and operational, it will replace the existing Form 26AS. Till then, both ‘Annual Information Statement’ as well as ‘Form 26AS’ will be made available to the taxpayer.

Under the present article briefing of one of the information categories of ‘Annual Information Statement’, that is ‘Income from investment in securitization trust’, is covered.

Annual Information Statement – Income from investment in securitization trust

Tax treatment of ‘Income from investment in securitization trust’-

Income received from investment in securitization trust is taxable under income tax. Provisions of section 115TCA of the Income Tax Act deals with the tax treatment of the same.

Accordingly, the person responsible for making payment of income from investment in securitization trust is required to deduct TDS as per provisions of section 194LBC. The following table highlights the rates at which TDS is deductible-

Particulars TDS rates
Resident individual or HUF 25%
Any other resident 30%
Non-resident Rate in force

Once the deductor deducts TDS under section 194LBC, he is required to furnish TDS return in Form 27Q on a quarterly basis and issue TDS certificate in Form 16A also on a quarterly basis.

Source of information for AIS category ‘Income from investment in securitization trust’-

Information for the referred information category under AIS will be taken from the quarterly TDS return filed by the deductor in Form 27Q.

Processing of information under AIS for the category ‘Income from investment in securitization trust’-

Income received from investment in securitization trust, as obtained from Form 27Q filed by the deductor, will be treated as taxable in the hands of the deductee/ recipient. Accordingly, said income will be taxable under the head ‘Income from other sources’.

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