India - Income Tax Act 2010 - Saarc

1.283 CH. IV - COMPUTATION OF BUSINESS INCOME S. 43D(2) Where an asset [not being an asset referred to in sub-section (2) of section 45]which becomes the property of the assessee on the total or partial partition of aHindu undivided family or under a gift or will or an irrevocable trust, is sold afterthe 29th day of February, 1988, by the assessee as stock-in-trade of the businesscarried on by him, the cost of acquisition of the said asset to the assessee incomputing the profits and gains from the sale of such asset shall be the cost ofacquisition of the said asset to the transferor or the donor, as the case may be,as increased by the cost, if any, of any improvement made thereto, andthe expenditure, if any, incurred, wholly and exclusively in connection with suchtransfer (by way of effecting the partition, acceptance of the gift, obtainingprobate in respect of the will or the creation of the trust), including the paymentof gift-tax, if any, incurred by the transferor or the donor, as the case may be.]46[Special provision in case of income of public financial institutions, publiccompanies, etc.43D. Notwithstanding anything to the contrary contained in any other provisionof this Act,—(a) in the case of a public financial institution or a scheduled bank or aState financial corporation or a State industrial investment corporation,the income by way of interest in relation to such categories of bador doubtful debts as may be prescribed 47 having regard to theguidelines issued by the Reserve Bank of India in relation to suchdebts;(b) in the case of a public company, the income by way of interest inrelation to such categories of bad or doubtful debts as may beprescribed 48 having regard to the guidelines issued by the NationalHousing Bank in relation to such debts,shall be chargeable to tax in the previous year in which it is credited by the publicfinancial institution or the scheduled bank or the State financial corporation orthe State industrial investment corporation or the public company to its profitand loss account for that year or, as the case may be, in which it is actuallyreceived by that institution or bank or corporation or company, whichever isearlier.Explanation.—For the purposes of this section,—(a) “National Housing Bank” means the National Housing Bank establishedunder section 3 of the National Housing Bank Act, 1987 (53 of1987);(b) “public company” means a company,—(i) which is a public company within the meaning of section 3 49 ofthe Companies Act, 1956 (1 of 1956);46. Substituted by the Finance Act, 1999, w.e.f. 1-4-2000. Prior to its substitution, section 43Dwas inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991.47. See rule 6EA, framed under section 43D, as it stood prior to 1-4-2000.48. See rule 6EB.49. Clause (iv) of section 3(1) of the Companies Act, 1956, defines “public company”. For textof section 3, see Appendix.