Banks have asked for rationalisation of the Income Tax Act with the RBI guidelines on NPAs. There is a considerable divergence between provision made under RBI guidelines and those admissible under the I-T Act. There is a difference between income determined as per the tax laws and the books of accounts, which are maintained as per RBI guidelines. Hence the deduction available is different in both cases. The provisions for NPAs under the I-T Act precede the RBI guidelines on the same. The provision for NPA debited to Profit and Loss account as per RBI Act, is not eligible for deduction under the I-T Act. Bad debts under IT do not include doubtful debts. The provisions for NPA under the RBI directions is not only in respect of loss assets but also doubtful assets and sub-standard assets. Depending upon the period for which the asset has been considered as doubtful, various percentages of the amount is to be provided. So even as banks continue to provide for a doubtful asset, the definition for a doubtful asset is yet to be ascertained and is at present under the consideration of the Special Bench of the Income Tax Appellate Tribunal (ITAT).