CBDT Notifies NBFCs Classified into Top, Upper and Middle Layers for the Purpose of Sec. 43B & Sec. 43D

  • Blog|News|Income Tax|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 25 September, 2023

Recent Posts

Blog, News, Insolvency and Bankruptcy Code

IBBI Proposes Changes in Liquidation Regulations to Ensure Transparency in Compromise or Arrangement Schemes

Blog, News, Insolvency and Bankruptcy Code

IBBI Proposes to Strengthen the Regulatory Framework Governing Monitoring Committees Under IBC

Latest from Taxmann

Purpose of Sec. 43B & Sec. 43D

Notification No. 79/2023 & Notification No. 80/2023, dated 22-09-2023

Clause (da) of Section 43B provides that any interest payable on the loan taken from a Deposit-taking NBFC or a Systematically Important Non-deposit-taking NBFC shall be allowed as a deduction only when the payment is made.

Further, from the list of specified entities in Section 43D, only two classes of NBFCs are included: Deposit-taking NBFCs and Systemically Important Non-Deposit-taking NBFCs.

The Reserve Bank of India no longer follows such two classifications for NBFCs. Thus, the Finance Act 2023 substituted these two classes of NBFCs with such class of NBFCs as may be notified by the Central Government.

Now, the Central Board of Direct Taxes (CBDT) has notified the following classes of NBFCs for the purpose of these sections:

a) all NBFCs classified in the Top Layer;

b) all NBFCs classified in the Upper Layer; and

c) all NBFCs classified in the Middle Layer.

Click Here To Read The Full Notification

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied