Income-tax (Thirtieth Amendment) Rules 1999 - S.O.1012(E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION NO. 11101 New Delhi, the 6th October, 1999 INCOME-TAX S.O.1012(E). -In exercise of the powers conferred by section 295, read with clause (b) of Section 43D of the Income-tax Act, 1961 (43 of 1961) , the Central Board of Direct taxes hereby makes the following rules further to amend the Income-tax Rules, 1962 . namely:- 1. (1) These rules may be called the Income-tax (Thirtieth Amendment) Rules 1999 (2) They shall come into force on their publication in the Official Gazette. 2. In the Income-tax Rules, 1962 after rule 6EA , the following rule shall be inserted, namely:- 6EB. Categories of bad or doubtful debts in the case of a public company under clause (b) of section 43D. -The provisions of clause (b) of section 43D shall apply in the case of every public company where its income by way of interest pertains to the, following categories of bad and doubtful debts, namely:- (a) (i) doubtful asset, that is, a debt which has remained non-performing asset of the nature specified in sub-clause (ii) for a period exceeding two years: (ii) non-performing asset referred to in sub-clause (i) shall be the following:- (1) term loan beyond one year, if the interest amount remains past due for six months or instalment is over-due for more than six months: (2) lease rental or hire purchase instalment, if the rental or the instalment is past due for six months; (3) bill purchased or discounted, if the bill remains over due and unpaid for six months: or (4) any other credit facility in the nature of short term loan or advance [other than those referred to in (1), (2) and (3) above], if any amount to be received in respect of such a facility remains past due for a period of six months. (b) loss asset that is, a debt which has been identified as loss and considered as uncollectible but has not been written off in the accounts of the assessee. Explanation. --For the purposes of this rule, an amount shall be deemed to be past due when it remains unpaid or thirty days beyond the due date. [F. No. 142/8/99-TPL] S. BALASUBRAMANIAN. Under Secy.