Bad debts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2016 Dear sir
One of my debtors has not paid my bill amount Rs. 91256/- plz tell me can income tax department insist him to pay my bill amount or not because i have trf this amount in bad debts...

Regard
Nishant jain

Ankur Singhal

Ankur Singhal (Expert)
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26 March 2016 Dear
income tax never insist the person to pay you the money.
You can take legal actions against him on your own.

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2016 Sir if income tax never insist to pay the amount then it will be the loss of income tax... because in my case my dentor has not paid the bill amount therefore i have trf that amount in bad debts which is deductable under income tax. Hence it would be loss of income tax also...

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Ankur Singhal

Ankur Singhal (Expert)
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26 March 2016 DEAR
YES YOU ARE RIGHT.
ITS A LOSS TO INCOME TAX TOO BUT A MUCH BIG LOSS TO YOU.
YOU SHOULD TAKE LEGAL ACTION AGAINST THAT PERSON.