Clause 13 - Amendment of section 43B.

Restriction on interest deduction: interest to certain non-banking lenders deductible only when actually paid, with conversion excluded.

The amendment inserts clause (da) in section 43B to allow deduction of interest payable to specified non-banking financial companies only in the previous year in which such interest is actually paid; interest converted into a loan is not deemed paid. An Explanation prevents deduction where the same interest was already allowed under computation of business income in an earlier year when the liability was incurred. Definitions for deposit-taking and systemically important non-deposit taking non-banking financial companies are added to the section.