Budget 2025: Income Tax TDS Rate on Securitization Trust Investments cut down to 10%

The Union Budget 2025 proposed to reduce the Tax Deducted at Source (TDS) rate on securitization trust investments from 30% to 10%. This change aims to make securitization investments more attractive by lowering the tax burden on income earned from these investments. It will provide better liquidity to investors in such trust arrangements and make the Indian market more competitive. The reduced TDS rate is expected to boost investment in securitization products and promote financial market development. This policy change is part of a broader strategy to encourage investments in alternative financial instruments while improving the overall investment climate in India.