« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  On why FBT is fast becoming totalitarian for India Inc... Govt likely to tax companies on forfeited share money... » Banks: Rationalise I-T Act January, 28th 2008 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).