[Section 36(1)(viia)] : Provision for Bad and Doubtful Debts relating to Rural Branches of Commercial Banks
In respect of any provision for bad and doubtful debts made by,—
A scheduled bank (not being a foreign bank) or a co-operative bank (other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank) or a non-scheduled bank,
a deduction shall be allowed
of an amount not exceeding 8.5% of the total income (computed before making any deduction under this clause and Chapter VIA i.e. deductions u/s 80C to 80U) and
of an amount not exceeding 10% of the aggregate average advances made by the rural branches of such bank computed in the prescribed manner.
A bank incorporated by or under any foreign laws or a public financial institution or a State Financial Corporation or a State Industrial Investment Corporation,
a deduction shall be allowed of an amount not exceeding 5% of the total income (computed before making any deduction under this clause and Chapter VIA).
A non-banking financial company,
a deduction shall be allowed of an amount not exceeding 5% of total income (computed before making any deduction under this clause Chapter VIA).
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