Consider the following statements:
Interest income from the deposits (InvITs) distributed to their investors is in Infrastructure Investment Trusts exempted from tax, but the dividend is taxable.
Statement-II :
InvITs are recognized as borrowers under the ‘Securitization and Recon- struction of Financial Assets and Enforcement of Security Interest Act, 2002’.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I incorrect is but Statement-II is correct
ANS D
Statement I is incorrect: The dividend and Interest income from InvITs is completely taxable as per the slab rate of the investor
