Amendment of section 43B

In force As on 07 Oct 2026

Ministry Finance Cited by 2 provisions

Section 13 of the Finance Act, 2019 (No. 2) deals with amendment of section 43B. Amendment of section 43B 13. In section 43B of the Income-tax Act, with effect from the 1st day of April, 2020,— (i) | after clause (d), the following clause shall be inserted, namely:— "(da) | any sum payable by the assessee as interest on any loan or borrowing from a deposit taking non-banking fin

Amendment of section 43B
13. In section 43B of the Income-tax Act, with effect from the 1st day of April, 2020,—
(i) after clause (d), the following clause shall be inserted, namely:—
"(da) any sum payable by the assessee as interest on any loan or borrowing from a deposit taking non-banking financial company or systemically important non-deposit taking non-banking financial company, in accordance with the terms and conditions of the agreement governing such loan or borrowing, or";
(ii) after Explanation 3A, the following Explanation shall be inserted, namely:—
"Explanation 3AA.—For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (da) is allowed in computing the income referred to in section 28, of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 2019, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.";
(iii) after Explanation 3C, the following Explanation shall be inserted, namely:—
"Explanation 3CA.—For the removal of doubts, it is hereby declared that a deduction of any sum, being interest payable under clause (da), shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not be deemed to have been actually paid.";
(iv) in Explanation 4, after clause (d), the following clauses shall be inserted, namely:—
'(e) "deposit taking non-banking financial company" means a non-banking financial company which is accepting or holding public deposits and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934 (2 of 1934);
(f) "non-banking financial company" shall have the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);
(g) "systemically important non-deposit taking non-banking financial company" means a non-banking financial company which is not accepting or holding public deposits and having total assets of not less than five hundred crore rupees as per the last audited balance sheet and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934 (2 of 1934).'.
Section 13, The Finance Act, 2019 (No. 2).

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Questions about Section 13

What does Section 13 of the Finance Act, 2019 (No. 2) deal with?

Section 13 of the Finance Act, 2019 (No. 2) is headed "Amendment of section 43B". Amendment of section 43B 13. In section 43B of the Income-tax Act, with effect from the 1st day of April, 2020,— (i) | after clause (d), the following clause shall be inserted, namely:— "(da) | any sum payable by the assessee as interest on any loan or borrowing from a deposit taking non-banking fin

How do I find court cases under Section 13 of the Finance Act, 2019 (No. 2)?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act, 2019 (No. 2) 13, section 13 Finance Act, 2019 (No. 2), section 13 of the Finance Act, 2019 (No. 2). Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 13 of the Finance Act, 2019 (No. 2), and has it changed?

Its own text turns on section 28 (Amendment of section 80LA), section 45 (Amendment of section 194-IA), Income-tax Act 43B (Certain deductions to be only on actual payment), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.

When was the Finance Act, 2019 (No. 2) enacted?

Finance Act, 2019 (No. 2) was enacted in 2019. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

Fifth Schedule. -12409 words
First Schedule. Income-tax9078 words
2. Income-tax4914 words
105. Insertion of new sections 101A, 101B and 101C1547 words
138. Insertion of new sections 45-ID and 45- IE1010 words
6. Amendment of section 10907 words

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(ii)		after Explanation 3A, the following Explanation shall be inserted, namely:—
		"Explanation 3AA.—For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (da) is allowed in computing the income referred to in section 28, of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 2019, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.";
(iii)		after Explanation 3C, the following Explanation shall be inserted, namely:—
		"Explanation 3CA.—For the removal of doubts, it is hereby declared that a deduction of any sum, being interest payable under clause (da), shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not be deemed to have been actually paid.";
(iv)		in Explanation 4, after clause (d), the following clauses shall be inserted, namely:—

'(e)		"deposit taking non-banking financial company" means a non-banking financial company which is accepting or holding public deposits and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934 (2 of 1934);
(f)		"non-banking financial company" shall have the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);
(g)		"systemically important non-deposit taking non-banking financial company" means a non-banking financial company which is not accepting or holding public deposits and having total assets of not less than five hundred crore rupees as per the last audited balance sheet and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934 (2 of 1934).'.