TaxTMI 
TaxTMI 
Special provision regarding interest on bad and doubtful debts of financial institutions, banks, etc.
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....on, scheduled bank, State financial corporation and State industrial investment corporation where its income by way of interest pertains to the following categories of bad and doubtful debts, namely:- (a) (i) Non-viable or sticky advances, i.e., where irregularities of the nature specified in sub-clause (ii) are noticed in the accounts of the borrowers for a period of six months and more and the....
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....ent or stagnation of stocks observed during inspections; (7) low or negligible level of activity observed during inspections or suspension or closure of the business; (8) persistent delay in compliance with vital requirements like execution of documents, producing additional security when required or non-compliance with such requirements; (9) diversion of funds to sister units or acquiring c....
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....ng power or the sanctioned limit, for a temporary period; (2) instalments in respect of term-loans are overdue for less than 6 months or import bills under letters of credit or instalments under deferred payment carried are overdue for less than 3 months; (3) bills not exceeding 10% to 15% of the total outstandings in the bills purchased or discounted account of the borrower are overdue for pa....