NBFCs are required to comply with various tax and regulatory obligations, including registration under the Companies Act, obtaining RBI approval, and adhering to income tax regulations. They must maintain proper financial records, file annual returns, and follow RBI’s prudential norms such as capital adequacy, asset classification, and provisioning. Regular audits, KYC norms, and compliance with the Prevention of Money Laundering Act (PMLA) are also mandatory.
In conclusion, tax and compliance for NBFCs are critical for their legal operation, financial transparency, and trustworthiness in the financial ecosystem.