 |
 |
India SC thumbs down NBFCs
January 13, 2010
The Supreme Court has ruled that the Non-banking Financial Companies (NBFCs) cannot claim deductions in accordance with the provision of the Income Tax Act on the pattern of India’s banking sector.
“NBFCs and banks are two different entities under Section 36(1)(VIIA) (of the I-T Act, 1961).
Banks are allowed deductions subject to a ceiling or a limit, and if the contentions of NBFCs are to be accepted that they should also be included in section 36(1)(VIIA), only then we will undertake judicial legislation.
Original Posting At: EconomicTimes
“NBFCs and banks are two different entities under Section 36(1)(VIIA) (of the I-T Act, 1961).
Banks are allowed deductions subject to a ceiling or a limit, and if the contentions of NBFCs are to be accepted that they should also be included in section 36(1)(VIIA), only then we will undertake judicial legislation.
Original Posting At: EconomicTimes
|
