It will also be observed that the Balance Sheet format prescribed under the Third Schedule to the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) specifically requires the banks to show ‘Overdue Interest Reserve’ as a distinct item on the ‘Capital and Liabilities’ side vide item 8 thereof. The illustrative accounting entries to be passed in respect of accrued interest on both the performing and non-performing advances are indicated in the Annex 3. 4.3.1 As a prudent practice and in order to bring about uniform accounting practice among banks for booking of income on units of UTI and equity of All India Financial Institutions, such income should be booked on cash basis and not on accrual basis.
ITAT Rajkot held that in absence of any specific provisions under the Income Tax Act, notional income on advance cannot be brought to tax. 5.5.1 This court in Garden Silk Mills Ltd. vs. CIT (No.2) [ 222 ITR 68 (Guj.)] reiterated the view that powers to reopen the assessment could not have the basis of the same facts and that change of opinion on the part of the Assessing Officer would not provide a ground to reopen the concluded assessment. Section 44AD is applicable if the taxpayer is a resident individual, resident Hindu undivided family or a resident partnership firm . In such a case, income is computed on estimated basis at the rate of 8% (6% See Note) of turnover. The rate of 8 % (6% See Note) is comprehensive (i.e., no further deduction is allowed under any other section, even the deduction of remuneration and interest to partners is not available).
For the purpose of Income Recognition and Asset Classification norms, all project loans may be divided into the following two categories; Project Loans for infrastructure sector Project Loans for non-infrastructure sector. While compounding interest at monthly rests effective from April 1, 2003, banks should ensure that in respect of advances where administered interest rates are applicable, they should re-align the rates suitably keeping in view the minimum lending rate charged by the bank so that they comply with the same. In all other cases also, banks should ensure that the effective rate does not go up merely on account of the switchover to the system of charging interest on monthly rests. It is thus contended that the interest income on the said loan did not accrue to assessee nor did not borrower provide for any such interest to assessee in his books of accounts. We are of the considered view that interest having neither been accrued to the assessee and neither any interest having being received by the assessee, such interest cannot be subject to tax in the hands of the assessee on purely “notional basis”. CIT, who in the instant set of facts, deleted the interest sought to be taxed in the hands of the assessee on notional basis.
The responsibility and validation levels for ensuring proper asset classification may be fixed by the banks. The existing credit facilities sanctioned to a unit under rehabilitation package approved by BIFR / term lending institutions, should continue to be classified as sub-standard or doubtful asset as the case may be. The entire assets should be written off after obtaining necessary approval from the competent authority and as per the provisions of the Co-operative Societies Act / Rules. If the assets are permitted to remain in the books for any reason, 100 per cent of the outstanding should be provided for.
But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage. The scheme applies to a person owning not more than 10 goods carriages at any time during the previous year. All deductions under sections 30 to 38, including depreciation and unabsorbed depreciation, are deemed to have been already allowed and no further deduction is allowed under these sections.
Socio-economic status, as measured by family income has been correlated with LBW incidence at both the individual and population levels. In this paper, we investigate the impact of household income on LBW incidence at different geographical levels. To show this, we choose to examine LBW incidences collected from the state of Georgia, in the US, at both the county and public health district.
I) The increase in scope and size of the project takes place before commencement of commercial operations of the existing project. 2.4 For this purpose, mere extension of DCCO will also be treated as restructuring even if all other terms and conditions remain the same. B) Collaterals such as immovable properties charged in favour of the bank should be got valued once in three years by valuers appointed as per the guidelines approved by the Board of Directors.
Where there is a threat of loss, or the recoverability of the advances is in doubt, the asset should be treated as NPA. Depending upon the duration of crops raised by an agriculturist, the above NPA norms would also be made applicable to agricultural term loans availed of by him. In respect of agricultural loans, other than those specified in the Annex 1 and term loans given to non-agriculturists, identification of NPAs would be done on the same basis as non-agricultural advances, which, at present, is the 90 days delinquency norm. And the war in Ukraine; all of which potentially contribute to income insecurity through job and income losses. Even without any income loss, increased prices for energy, food, and housing have eroded the buying power of households. The findings in Thomson and colleague’s review therefore highlight the importance of focusing on income security in public policy, including policy measures such as debt relief, minimum wage, and income supports including tax credits.
Ii) The unit becomes viable in 10 years, if it is engaged in infrastructure activities, and in 7 years in the case of other units. In respect of a borrower having more than one facility with a bank, all the facilities granted by the bank will have to be treated as NPA and not chinese youxuan kkr 6b the particular facility or part thereof which has become irregular. For the purpose of these guidelines, “long duration” crops would be crops with crop season longer than one year and crops, which are not “long duration” crops would be treated as “short duration” crops.
The system should ensure that identification of NPAs is done on an on-going basis and doubts in asset classification due to any reason are settled through specified internal channels within one month from the date on which the account would have been classified as NPA as per prescribed norms. Banks should also make provisions for NPAs as at the end of each calendar quarter i.e as at the end of March / June / September / December, so that the income and expenditure account for the respective quarters as well as the P&L account and balance sheet for the year end reflects the provision made for NPAs. 5.4 It is trite principle that powers under section 147 read withsection 148 of the Act to reopen the concluded assessment cannot be exercised merely because the Assessing Officer develops a change of opinion on his part.