Government Regulations under the existing provisions of section 43D, income by way of
interest in relation to the bad and doubtful debts of a public financial institution or a
scheduled bank or a state financial corporation or a state industrial investment
corporation is chargeable to tax in the previous year in which it is credited to the
profit and loss accountore, as the case may be, in which it is actually received,
whichever is earlier.
With a view to improving the viability of the housing finance companies and to provide a
boost to the housing sector the Bill proposes to extend the above provisions to such
companies registered with the National Housing Bank. The proposed amendment will take
effect feom April 1, 2000 and will, accordingly apply in relation to the assessment year
2000-2001 and subsequent years.
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