The Central Board of Direct Taxes (CBDT) vide notification S.O. 4192(E) and S.O. 4193(E) issued on 22nd September 2023 has notified the categorisation of the classes of Non-Banking Financial Institutions (NBFCs) in to the Section 43D and Section 43B of the Income Tax Act respectively.
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.
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.
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