SFT Flair Trust is a business trust registered under SEBI (Real Estate Investment Trusts) Regulations, 2014. Details of its income for the previous…

CA Final · Direct Tax Laws and International Taxation · MTP · January 2026
SFT Flair Trust is a business trust registered under SEBI (Real Estate Investment Trusts) Regulations, 2014. Details of its income for the previous year ended 31st March, 2025 are as follows: Rental income of 5 crores from directly owned real estate assets.Short term capital gain of 1.5 crore on sale of listed shares of XYZ Ltd., an Indian company in which SFT Flair trust holds controlling interest through holding 60% of the shareholding of XYZ Ltd. Transfer took place on 15.4.2024. STT paid both at the time of purchase and sale.Short term capital gain of 1 crore on sale of development properties.Dividend of 4.5 crore from XYZ Ltd. Miscellaneous Information: SFT Flair Trust has distributed 12 crores to its resident and non-resident unit holders in the previous year 2024-25. From the information given above, choose the most appropriate answer of MCQs 1 to 4:-
(A) 10% under section 194-I and rates in force under section 195, respectively
(B) 10% and rates in force, respectively under section 194LBA
(C) 30% and 10%, respectively under section 194LBA
(D) 5% and 10%, respectively under section 194LBA

Suggested Answer and Working Notes:

Correct Answer: Option (B)

10% and rates in force, respectively under section 194LBA

Topics: Double Taxation Relief, Non-Resident Taxation

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