• Shubham Mishra

Section 43D of Income Tax Act, 1961: Special provision in case of income of public financial int.

Updated: Oct 14

#Section43D

#IncomeTax

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#Institutions

 

No matter what the other provisions of this Act may say to the contrary,


(a) In the case of a public financial institution, a scheduled bank, a cooperative bank (other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank), a State financial corporation, a State industrial investment corporation, a deposit-taking non-banking financial company, or a systemically important non-deposit-taking non-banking financial company, the income by way of interest in relation to such categories shall be deemed to be the net income of such institutions.


(b) In the case of a public company, the interest income related to the categories of bad or questionable debts that may be prescribed11 while taking into account the National Housing Bank's guidelines regarding such debts,


the public financial institution, the scheduled bank, a cooperative bank other than a primary agricultural credit society or a primary cooperative agricultural and rural development bank, the State financial corporation, the State industrial investment corporation, a deposit-taking non-banking financial company, or a systemically important non-deposit-taking non-banking financial company, shall be subject to tax in the prior year in which it is credited.

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