43D. Special provision in case of income of public financial
institutions, public companies, etc.- 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 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 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.
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