With the Budget provisions to exempt securitisation trusts from taxation, mutual fund houses are likely to enter into securitisation deals after staying away from it since last year, say industry experts. Mutual fund houses have kept off securitisation deals in the recent past after tax claims had been raised by the tax department on such deals last year. "The Budget has brought clarity to the tax provisions relating to securitisation. This will help MFs to enter into securitisation deals. MFs were otherwise staying away from the space due to tax claims," IDBI MF Managing Director and Chief Executive Debasish Mallick told PTI today. He also said with this clarity, securitisation deals are likely to come back to the pre-tax claims period. This year's Budget has provisions to exempt securitisation trusts from taxes.

Source - http://economictimes.indiatimes.com