Section 43D of Income Tax Act "Special provision in case of income of public financial institutions, public companies, etc."
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 co-operative bank other than a primary
agricultural credit society or a primary co-operative
agricultural and rural development bank or a State financial
corporation or a State industrial investment corporation
86[or a deposit taking non-banking financial company or a
systemically important non-deposit taking non-banking
financial company], the income by way of interest in
relation to such categories of bad or doubtful debts as may
be prescribed 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 prescribed 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 a co-operative bank other than a primary
agricultural credit society or a primary co-operative
agricultural and rural development bank or the State
financial corporation or the State industrial investment
corporation or 87[a deposit taking non-banking financial
company or a systemically important non-deposit taking
non-banking financial company 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;
(g) "co-operative bank", "primary agricultural credit
society" and "primary co-operative agricultural and rural
development bank" shall have the meanings respectively
assigned to them in the Explanation to sub-section (4) of
section 80P;
88[(h) the expressions "deposit taking non-banking financial
company", "non-banking financial company" and "systemically
important non-deposit taking non-banking financial company"
shall have the meanings respectively assigned to them in
clauses (e), (f) and (g) of Explanation 4 to section 43B.]