Question 1

Who it applies to

Accepted Answer

Banking companies

Question 2

Structure and contents

Accepted Answer

Part / area What it covers Provisions Provisions for advances allowed up to 1% of total advances (5% for consumer and SME advances), in line with Prudential Regulations Bad debts Write-offs of advances classified as 'loss' allowed; reversals are taxable Dividends and capital gains Taxed at the banking company's rate as part of its income Rates Corporate rate for banking companies (42% for TY2027) plus super tax of 10% above Rs 150 million. From TY2025 the advance-to-deposit ratio rates in rule 6A no longer apply.

Question 3

How it works in practice

Accepted Answer

Start from profit before tax per audited accounts, apply the Schedule's adjustments, and tax at the Div II banking rate.

Part / area	What it covers
Provisions	Provisions for advances allowed up to 1% of total advances (5% for consumer and SME advances), in line with Prudential Regulations
Bad debts	Write-offs of advances classified as 'loss' allowed; reversals are taxable
Dividends and capital gains	Taxed at the banking company's rate as part of its income
Rates	Corporate rate for banking companies (42% for TY2027) plus super tax of 10% above Rs 150 million. From TY2025 the advance-to-deposit ratio rates in rule 6A no longer apply.