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<h1>Interest income taxation of bad or doubtful debts taxed on earlier of credit or receipt for specified financial institutions.</h1> Interest income relating to bad or doubtful debts of a specified financial institution is chargeable to tax under the head Profits and gains of business or profession in the tax year in which such interest is credited to the profit and loss account or actually received, whichever is earlier; specified financial institutions and categories of bad or doubtful debts are defined and linked to prescribed categories and Reserve Bank guidelines.