14 July 2021
“A company will be treated as an NBFC if its financial assets are more than 50 per cent of its total assets (netted off by intangible assets) and income from financial assets should be more than 50 percent of the gross income. Both these tests are required to be satisfied as the determinant factor for principal business of a company.”
Would like to know if income from F&O trading without pledge of any securities is considered as income from financial assets as per the above rule?
CAclubindia
