The notification 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 Section 43D 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 has notified the following classes of NBFCs under Section 43D of the Income-tax Act, 1961:
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 is based on 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 (Top, Upper, and Middle Layers)
NBFCs should review the implications of Section 43D on their tax liabilities and adjust their financial reporting and tax planning accordingly.
Impact on Investors and Lenders
Due diligence processes may need to incorporate a review of the NBFC's compliance with Section 43D and its impact on their financial statements.
Suggested Action Items
Monitor further guidance or clarifications from the Central Board of Direct Taxes (CBDT) regarding the implementation of Section 43D for NBFCs.
Key Entities Referenced
Central Government: The issuer of the notification, acting through the Ministry of Finance (Department of Revenue) and the Central Board of Direct Taxes (CBDT).
Non-Banking Financial Companies (NBFCs): Specifically, NBFCs classified in the Top Layer, Upper Layer, and Middle Layer as per RBI guidelines.
Income-tax Act, 1961: The primary legislation under which Section 43D is defined and the basis for this notification.
Section 43D of the Income-tax Act, 1961: The specific section of the Income-tax Act that this notification pertains to, likely dealing with special provisions for computing income from certain types of assets of financial institutions.
Reserve Bank of India (RBI): The regulatory body whose classification guidelines for NBFCs (Circular DOR.CRE.REC.No.60/03.10.001/2021-22 dated October 22, 2021) are used to determine the applicable NBFC layers.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-25092023-248897
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 4024] नई दिल्ली, िुक्रिार, जसतम्ब र 22, 2023/भार 31, 1945
No. 4024] 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. 4192(अ).—केंरीय सरकार, आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 43घ द्वारा प्रित्त
िजियों का प्रयोग करत े हुए, उि धारा के प्रयोिन हते ु गैर-बैंककारी जित्तीय कंपजनयों (एनबीएफसी) के जनम्नजलजखत िग ड
अजधसूजचत करती ह,ै अर्ाडत् :-
(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);
6056 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
स्ट्पष्टीकरण.—गैर-बैंककारी जित्तीय कंपजनयों का उच्च स्ट्तर, उच्चतर स्ट्तर और मध्य स्ट्तर म ें िगीकरण भारतीय
ररिि ड बैंक के पररपत्र स.ंडीओआर.सीआरई.आरईसी.60/03.10.001/2021-22, तारीख 22 अिूबर, 2021 म ें अंतर्िडष्ट
दििाजनिेिों के अनुसार होगा ।
2. यह अजधसूचना रािपत्र म ेंइसके प्रकािन की तारीख को प्रिृत्त होगी ।
[अजधसूचना स.ं 79/2023/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. 4192(E).—In exercise of the powers conferred by section 43D 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 section, 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. 79/2023/ 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.