The notification S.O. 4193(E) issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, notifies specific classes of Non-Banking Financial Companies (NBFCs) for the purpose of clause (da) of Section 43B of the Income-tax Act, 1961.
The notification is effective from the date of its publication in the Official Gazette, which is September 22, 2023.
Key Changes
The Central Government, in exercise of powers conferred by clause (da) of section 43B of the Income-tax Act, 1961, has notified the following classes of NBFCs:
All NBFCs classified in the Top Layer.
All NBFCs classified in the Upper Layer.
All NBFCs classified in the Middle Layer.
The classification of NBFCs into Top, Upper, and Middle Layers will be as per the Reserve Bank of India (RBI) guidelines outlined in Circular DOR.CRE.REC.No.60/03.10.001/2021-22 dated October 22, 2021.
Impact Analysis
Impact on NBFCs
This may affect the deductibility of certain expenses for these NBFCs under the Income-tax Act.
Impact on Taxpayers dealing with NBFCs
Taxpayers should consult with tax advisors to understand the specific implications for their transactions with these NBFCs.
Suggested Action Items
Consult with tax professionals to ensure compliance with the updated regulations.
Key Entities Referenced
Central Board of Direct Taxes (CBDT): The issuer of the notification, under the Department of Revenue, Ministry of Finance.
Income-tax Act, 1961: The principal act governing income tax in India. Section 43B pertains to certain deductions to be allowed only on actual payment.
Non-Banking Financial Companies (NBFCs): Financial institutions that provide banking services without holding a banking license.
Reserve Bank of India (RBI): The central bank of India, responsible for regulating NBFCs. The classification of NBFCs is based on RBI guidelines.
Circular DOR.CRE.REC.No.60/03.10.001/2021-22: RBI circular dated October 22, 2021, which provides guidelines for the classification of NBFCs into different layers (Top, Upper, Middle).
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-22092023-248898
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असाधारण
EXTRAORDINARY
भाग II—खण्ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 4025] नई दिल्ली, िुक्रिार, जसतम्ब र 22, 2023/भार 31, 1945
No. 4025] NEW DELHI, FRIDAY, SEPTEMBER 22, 2023/BHADRA 31, 1945
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केन्द्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 22 जसतम् बर, 2023
आय-कर
का.आ. 4193(अ).— केंरीय सरकार, आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 43ख के खडं (घक)
द्वारा प्रित्त िजियों का प्रयोग करत े हुए, उि खंड के प्रयोिन हते ु गैर-बैंककारी जित्तीय कंपजनयों (एनबीएफसी) के
जनम्नजलजखत िगड अजधसूजचत करती ह,ै अर्ाडत:्-
(क) उच् च स्ट्तर म ें िगीकृत सभी गरै -बैंककारी जित्तीय कंपजनयां (एनबीएफसी);
(ख) उच् चतर स्ट्तर म ें िगीकृत सभी गैर-बैंककारी जित्तीय कंपजनयां (एनबीएफसी);
(ग) मध्य स्ट्तर म ें िगीकृत सभी गैर-बैंककारी जित्तीय कंपजनयां (एनबीएफसी);
6057 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
स्ट्पष्टीकरण.— गैर-बैंककारी जित्तीय कंपजनयों का उच् च स्ट्तर, उच् चतर स्ट्तर और मध्य स्ट्तर म ें िगीकरण भारतीय
ररििड बैंक के पररपत्र स.ं डीओआर.सीआरई.आरईसी.60/03.10.001/2021-22, तारीख 22 अिूबर, 2021 म ें अतं र्िष्टड
जनिाजनिेिों के अनुसार होगा ।
2. यह अजधसूचना रािपत्र म ेंइसके प्रकािन की तारीख को प्रिृत्त होगी ।
[अजधसूचना सं. 80/2023 /फा. स.ं 370142/31/2023-टीपीएल]
जिजितेि आनंि, अिर सजचि
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 22nd September, 2023
INCOME-TAX
S.O. 4193(E).— In exercise of the powers conferred by clause (da) of section 43B of the Income-tax Act,
1961 (43 of 1961), the Central Government hereby notifies the following classes of non-banking financial companies
(NBFCs), for the purpose of the said clause, namely:–
(a) all NBFCs classified in the Top Layer;
(b) all NBFCs classified in the Upper Layer;
(c) all NBFCs classified in the Middle Layer.
Explanation.– The classification of NBFCs in the Top Layer, Upper Layer and Middle Layer shall be according to the
Reserve Bank of India’s guidelines contained in Circular DOR.CRE.REC.No.60/03.10.001/2021-22 dated
October 22, 2021.
2. This notification shall come into force from the date of its publication in the Official Gazette.
[Notification No. 80/2023/F. No.370142/31/2023-TPL]
JIVITESH ANAND, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.