suppose in private limited company some employees do embezzlement of money , then how can company can claim loss due to embezzlement of money as per income tax act? tell me procedure need to follow for claiming Loss due to embezzlement of money by employees. give me details for document required to claim loss due to embezzlement of money
25 November 2017
Claim Abnormal Loss in P&L A/c while calculating Business Profit Taxable under PGBP Head. FIR copy of theft and documents related to employment of employees involved in embezzlement should be kept in case it is required subsequentaly.
25 November 2017
suppose if amount of embezzled money later recovered in subsequent assessment year, than can company can claim recovered amount as income in that year? suppose no FIR filled but there is confession of Employees who embezzled money than can company claim as evidence?
25 November 2017
It would be practically difficult to convince Assessing Officer, the genuineness of transaction to his satisfaction. Since it looks like you are only shifting business profit to subsequent Assessment Years.
25 November 2017
Thanks for your reply. actually this incidence happened in our company & we got confession from employee but still not filed FIR. we are afraid that we might not get recovery of embezzled money in current F.Y. but we can get money in subsequent F.Y.'s
CAclubindia
