Current Affairs-Indian Government's Union Budget 2013-14: Securitisation Trust to be Exempted from Income Tax

Securitisation Trust to be Exempted from Income Tax

The Finance Bill 2013 proposes to exempt the Securitisation Trust from Income Tax. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram said that this will facilititate the financial institutions to securitise their assets through a special purpose vehicle. Tax shall be levied only at the time of distribution of income by the Securitisation Trust at the rate of 30 percent in case of companies and at the rate of 25 percent in the case of an individual or HUF. No further tax will be levied on the income received by the investors from the Securitisation Trust.