Definition of credit institution and financial company expanded; interest definition revised to include commitment charges and bill discounts. Amendments to section 2 of the Interest-tax Act insert detailed definitions of credit institution and financial company, enumerating banking companies, cooperative banks, public financial institutions, State financial corporations and various categories of finance companies (hire-purchase, investment, housing, loan, mutual benefit/Nidhi and miscellaneous). The definition of interest is substituted to include interest on loans and advances made in India and to expressly include commitment charges on unutilised sanctioned credit and discounts on promissory notes and bills of exchange, while excluding specified items; clause (9) is omitted.
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Definition of credit institution and financial company expanded; interest definition revised to include commitment charges and bill discounts.
Amendments to section 2 of the Interest-tax Act insert detailed definitions of credit institution and financial company, enumerating banking companies, cooperative banks, public financial institutions, State financial corporations and various categories of finance companies (hire-purchase, investment, housing, loan, mutual benefit/Nidhi and miscellaneous). The definition of interest is substituted to include interest on loans and advances made in India and to expressly include commitment charges on unutilised sanctioned credit and discounts on promissory notes and bills of exchange, while excluding specified items; clause (9) is omitted.
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