Amendment of section 43D.
14. In section 43D of the Income-tax Act, with effect from the 1st day of April, 2024,––
(i) in clause (a), for the words “a deposit taking nonbanking financial company or a systemically important nondeposit taking non-banking financial company”, the words “such class of non-banking financial companies as may be notified by the Central Government in the Official Gazette in this behalf” shall be substituted;
(ii) in the long line, for the words “a deposit taking nonbanking financial company or a systemically important nondeposit taking non-banking financial company”, the words “such class of non-banking financial companies as may be notified by the Central Government in the Official Gazette in this behalf,” shall be substituted;
(iii) in the Explanation, for clause (h), the following clause shall be substituted, namely:––
‘(h) the expression “non-banking financial company” shall have the meaning assigned to it in clause (vii) of the Explanation to clause (viia) of sub-section (1) of section 36.’.
Notes on Clauses:
Clause 14 of the Bill seeks to amend section 43D of the Income-tax Act relating to special provision in case of income of public financial institutions, public companies, etc.
It is proposed to amend the said section to substitute the expression “a deposit taking nonbanking financial company or a systemically important non-deposit taking non-banking financial company” with “such class of non-banking financial companies as may be notified by the Central Government in the Official Gazette in this behalf”.
It is further proposed to substitute clause (h) of the Explanation to the said section to define the expression “non-banking financial company”.
These amendments will take effect from 1st April, 2024 and will, accordingly, apply in relation to the assessment year 2024-2025 and subsequent assessment years.
