Section 194LBC of the Income Tax Act, 1961 has been inserted with effect from 1st June 2016.
Deductor: A person making payment to an investor in respect of an investment in a Securitization Trust shall be liable to deduct tax.
Time of Deduction: Deduction shall be made by payer, earlier of
- At the time of credit of income to the account of the recipient or
- At the time of payment in cash or draft or cheque or any other mode
TDS Rate : Latest Update – As per the Budget 2025 update, effective from 1st April 2025, the rate of TDS on Income in respect of Investment in Securitization Trust has been reduced.
| Period | TDS Rate |
| Before 01/04/2025 | 25% (Individual & HUF) & 30% (Others) |
| On or after 01/04/2025 | 10% (Individual & HUF and Others) |