Special Provision in case of income of public financial institutions - (New) Section 56 / (Old) Section 43D

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... whichever is earlier. Meaning of "Specified financial institution" means - • (i) a public financial institution; or • (ii) a scheduled bank; or • (iii) a co-operative bank, other than - • (A) a primary agricultural credit society; or • (B) a primary co-operative agricultural and rural development bank; or • (iv) a State Financial Corporation; or • (v) a State Industrial Investment Corporation; or • (vi) any such class of non-banking financial companies, as may be notified by the Central Government; Meaning of "Bad or doubtful debts" • "bad or doubtful debts" shall be such categories of debts, as may be prescribed,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 180 days from the specified due date for payment; and • (b) in relation to an account, where,-- • (i) a working capital borrowal account with irregular drawings for a continuous period of 180 days even though the unit may be working or the borrower's financial position is satisfactory and for this purposes the outstanding in the account based on drawing power calculated from stock statements older than six months would be deemed as irregular; or • (ii) the regular or ad hoc credit limits have not been reviewed or renewed within 180 days from the due date or date of ad hoc ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0 days from the date of demand or call or on which interest amount remained overdue for a period of more than 180 days; • (D) a bill • which remains overdue for a period of more than 180 days; • (E) the interest in respect of a debt or the income on receivables under the head 'other current assets' in the nature of short-term loans or advances, • which facility remained overdue for a period of more than 180 days; • (F) any dues on account of sale of assets or services rendered or reimbursement of expenses incurred, • which remained overdue for a period of more than 180 days; • (G) the lease rental and hire purchase instalment, • w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....;[such class of non-banking financial companies as may be notified by the Central Government in the Official Gazette in this behalf, Amended by FA, 2023] the Interest income on bad and doubtful debts prescribed by RBI. • In case of Public company carrying on business of providing long term finance for residential houses interest income on bad and  doubtful debts prescribed by National Housing Bank. [ w.e.f. 01.04.2025 Omitted Vide Finance (No. 2) Act, 2024 ] shall be chargeable to tax in the previous year in which it is credited by the assessee to its profit and loss account for that year or in the previous year in which it is actually received by the assessee whichever is earlier. Explanation.-For the purp....