Income Tax Act, 2025
Section 4: Ins. by Act 13 of 2018, s. 15 (w.r.e.f. 12017).
4. Ins. by Act 13 of 2018, s. 15 (w.r.e.f. 12017).
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(2) For the purposes of percentage of completion method, project completion method or straight line
method referred to in sub-section (1)—
(i) the contract revenue shall include retention money;
(ii) the contract costs shall not be reduced by any incidental income in the nature of interest,
dividends or capital gains.]
1[43D. Special provision in case of income of public financial institutions, public companies,
etc.—Notwithstanding anything to the contrary contained in any other provision of this Act,—
(a) in the case of a public financial institution or a scheduled bank or 2[a co-operative bank other
than a primary agricultural credit society or a primary co-operative agricultural and rural development
bank or] a State financial corporation or a State industrial investment corporation, the income by way
of interest in relation to such categories of bad or doubtful debts as may be prescribed having regard
to the guidelines issued by the Reserve Bank of India in relation to such debts;
(b) in the case of a public company, the income by way of interest in relation to such categories
of bad or doubtful debts as may be prescribed having regard to the guidelines issued by the National
Housing Bank in relation to such debts,
shall be chargeable to tax in the previous year in which it is credited by the public financial institution or
the scheduled bank or 2[a co-operative bank other than a primary agricultural credit society or a primary
co-operative agricultural and rural development bank or] the State financial corporation or the State
industrial investment corporation or the public company to its profit and loss account for that year or, as
the case may be, in which it is actually received by that institution or bank or corporation or company,
whichever is earlier.
Explanation.—For the purposes of this section,—
(a) “National Housing Bank” means the National Housing Bank established under section 3 of
the National Housing Bank Act, 1987 (53 of 1987);
(b) “public company” means a company,—
(i) which is a public company within the meaning of section 3 of the Companies
Act, 1956 (1 of 1956);
(ii) whose main object is carrying on the business of providing long-term finance for
construction or purchase of houses in India for residential purposes; and
(iii) which is registered in accordance with the Housing Finance Companies
(NHB) Directions, 1989 given under section 30 and section 31 of the National Housing Bank
Act, 1987 (53 of 1987);
For the purposes of percentage of completion method, project completion method or straight line
method referred to in sub-section
the contract revenue shall include retention money;
the contract costs shall not be reduced by any incidental income in the nature of interest,
dividends or capital gains.]
1[43D. Special provision in case of income of public financial institutions, public companies,
etc.—Notwithstanding anything to the contrary contained in any other provision of this Act,—
in the case of a public financial institution or a scheduled bank or 2[a co-operative bank other
than a primary agricultural credit society or a primary co-operative agricultural and rural development
bank or] a State financial corporation or a State industrial investment corporation, the income by way
of interest in relation to such categories of bad or doubtful debts as may be prescribed having regard
to the guidelines issued by the Reserve Bank of India in relation to such debts;
in the case of a public company, the income by way of interest in relation to such categories
of bad or doubtful debts as may be prescribed having regard to the guidelines issued by the National
Housing Bank in relation to such debts,
shall be chargeable to tax in the previous year in which it is credited by the public financial institution or
the scheduled bank or 2[a co-operative bank other than a primary agricultural credit society or a primary
co-operative agricultural and rural development bank or] the State financial corporation or the State
industrial investment corporation or the public company to its profit and loss account for that year or, as
the case may be, in which it is actually received by that institution or bank or corporation or company,
whichever is earlier.
Explanation.—For the purposes of this section,—
“National Housing Bank” means the National Housing Bank established under section 3 of
the National Housing Bank Act, 1987 (53 of 1987);
“public company” means a company,—
which is a public company within the meaning of section 3 of the Companies
Act, 1956 (1 of 1956);
whose main object is carrying on the business of providing long-term finance for
construction or purchase of houses in India for residential purposes; and
which is registered in accordance with the Housing Finance Companies
Directions, 1989 given under section 30 and section 31 of the National Housing Bank
Act, 1987 (53 of 1987);