Interest deduction for NBFC borrowings permitted only on actual payment, with conversion not treated as payment. Amendment adds clause (da) to section 43B to treat interest payable to specified deposit-taking and systemically important non-deposit-taking non-banking financial companies as deductible only when actually paid; it disallows a later section 43B deduction where that interest was already deducted under business income in an earlier year, and declares that interest converted into a loan is not deemed paid; definitions for the specified NBFC categories and cross-reference to the Reserve Bank registration requirement are inserted.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Interest deduction for NBFC borrowings permitted only on actual payment, with conversion not treated as payment.
Amendment adds clause (da) to section 43B to treat interest payable to specified deposit-taking and systemically important non-deposit-taking non-banking financial companies as deductible only when actually paid; it disallows a later section 43B deduction where that interest was already deducted under business income in an earlier year, and declares that interest converted into a loan is not deemed paid; definitions for the specified NBFC categories and cross-reference to the Reserve Bank registration requirement are inserted.
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