sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
General »
  E commerce companies set to collect tax from sellers
 Income tax return (ITR) filing: EPF gives you tax benefit under section 80C, but there is catch
 Finance ministry notifies annual tax return forms for businesses registered under GST
 ITR filing: Use this last day checklist and avoid penalty
 Income tax return filing 2018: Claiming foreign tax credit – how to deal with practical challenges
 Are you liable to pay tax on money received as gift?
 What are the Income Tax benefits to donors of Kerala flood victims?
 Here’s how you can reduce your taxes on pension income
 How to reset password on income tax e-filing website
 Income tax returns (ITR) filing: Taxpayers must include assets while filing tax if earnings overshoot mark
 No penalty on late filing of ITR if your income doesn't cross this limit

NBFCs likely to get tax treatment parity with banks
February, 21st 2013

The finance ministry is likely to extend the favourable tax treatment currently given to banks, public financial institutions and state finance corporations on their income from non-performing assets (NPAs) to non-banking financial companies (NBFCs) as well, making them taxable only in the year of receipt.

At present, NBFCs are taxed on such income in the year of accrual, while banks, PFIs, state finance corporations, housing finance companies and state industrial investment corporations are taxed only when it is received or credited to the profit and loss account, whichever is earlier. Sources said the department of financial services and the banking regulator have favoured the extension of the accounting benefit under Section 43D of the Income Tax Act to NBFCs too at pre-budget consultations within the finance ministry. NBFCs are bank-like institutions with the exception that these do not offer savings accounts.

Like other lenders, NBFCs too follow the Reserve Bank of India's (RBI's) prudential norms and defer income regarding their NPAs and make provisions for the same. However, income tax authorities do not recognise these norms and tax NBFCs on such deferment of income on accrual basis resulting in tax on unrealised income.

Sources in the department of financial services said the government is "positively inclined" to offer tax parity to NBFCs and the other lenders describing it a "reasonable demand" and hinted that the Budget could announce this change. The issue came up for discussion during a meeting in Mumbai on February 9 between industry representatives and officials including finance minister P Chidambaram, and senior officials from the department of financial services and the RBI.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions