Bad and doubtful debt interest rules define when specified lenders and public companies fall within section 56 treatment. Special provision governs the application of section 56 to interest income arising from bad and doubtful debts of specified financial institutions and public companies. The rule identifies overdue loans, out-of-order overdrafts or cash credit accounts, overdue bills, crop-linked instalments, securitisation liquidity facilities, derivative receivables, irregular working capital accounts, unreviewed credit limits, and inadequate security values. It also covers doubtful assets, non-performing assets and loss assets, and defines when an overdraft or cash credit account is treated as out of order.