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What is  Special provision in case of income of public financial institutions, public companies, etc.? Section 43D of Income Tax Act 1961

Special provision in case of income of public financial institutions, public companies, etc. is defined under section 43D of Income Tax Act 1961. Provisions under this section is:

Section 43D of Income Tax Act "Special provision in case of income of public financial institutions, public companies, etc."

Section 43D. Notwithstanding anything to the contrary contained in any other provision of this Act,-
(a) in the case of a public financial institution or a scheduled bank or a State financial corporation or a State industrial investment corporation, the income by way of interest in relation to such categories of bad or doubtful debts as may be prescribed84 having regard to the guidelines issued by the Reserve Bank of India in relation to such debts;

 

(b) in the case of a public company, the income by way of interest in relation to such categories of bad or doubtful debts as may be prescribed85 having regard to the guidelines issued by the National Housing Bank in relation to such debts,

shall be chargeable to tax in the previous year in which it is credited by the public financial institution or the scheduled bank or the State financial corporation or the State industrial investment corporation or the public company to its profit and loss account for that year or, as the case may be, in which it is actually received by that institution or bank or corporation or company, whichever is earlier.

 

Explanation.-For the purposes of this section,-

(a) "National Housing Bank" means the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987);

(b) "public company" means a company,-

(i) which is a public company within the meaning of section 3 of the Companies Act, 1956 (1 of 1956);

(ii) whose main object is carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes; and

(iii) which is registered in accordance with the Housing Finance Companies (NHB) Directions, 1989 given under section 30 and section 31 of the National Housing Bank Act, 1987 (53 of 1987);

(c) "public financial institution" shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956);

(d) "scheduled bank" shall have the meaning assigned to it in clause (ii) of the Explanation to clause (viia) of sub-section (1) of section 36;

(e) "State financial corporation" means a financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951);

(f) "State industrial investment corporation" means a Government company within the meaning of section 617 of the Companies Act, 1956 (1 of 1956), engaged in the business of providing long-term finance for industrial projects.

Income Tax Act 1961

What are Other deductions? General, What is Building, etc., partly used for business, etc., or not exclusively so used? Section 36, 37 and 38 of Income Tax Act 1961

What are Amounts not deductible? Section 40 of Income Tax Act 1961

What are Expenses or payments not deductible in certain circumstances? Section 40A of Income Tax Act 1961

What are Profits chargeable to tax? Section 41 of Income Tax Act 1961

What are Special provision for deductions in the case of business for prospecting, etc., for mineral oil? Section 42 of Income Tax Act 1961

What are Definitions of certain terms relevant to income from profits and gains of business or profession? Section 43 of Income Tax Act 1961

What are Special provisions consequential to changes in rate of exchange of currency? Section 43A of Income Tax Act 1961

What is the meaning of Certain deductions to be only on actual payment? Section 43B of Income Tax Act 1961

What is  Special provision for computation of cost of acquisition of certain assets? Section 43C of Income Tax Act 1961

What is  Special provision for full value of consideration for transfer of assets other than capital assets in certain cases? Section 43CA of Income Tax Act 1961

What is  Special provision in case of income of public financial institutions, public companies, etc.? Section 43D of Income Tax Act 1961

What is Insurance business Special provision for deduction in the case of trade, professional or similar association? Section 44 and 44A of Income Tax Act 1961

What is Maintenance of accounts by certain persons carrying on profession or business? Section 44AA of Income Tax Act 1961

What is the provision regarding Audit of accounts of certain persons carrying on business or profession? Section 44AB of Income Tax Act 1961

What is Special provision for computing profits and gains of business on presumptive basis? Section 44AD of Income Tax Act 1961

What is Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages? Section 44AE of Income Tax Act 1961

What is Special provisions for computing profits and gains of retail business? Section 44AF of Income Tax Act 1961

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