25 June 2009
suppose you have a creditor for rs. 10000 and suddenly your creditor send u a notice that his firm has been dissolved and we are not required to pay him further remaining amount...
now clarify me that how ill u treat that rs. 10000 in your books is it an income for us ? if yes, will it is taxable under income tax act ?
25 June 2009
I dont agree with Mr. Balakrishnan. As you are not required to pay anything to the Creditor, the amount Rs.10,000 will be treated as capital receipt and will not be charged to tax. Waiver by creditor is not your income.
I request experts to put their opinion on this and keep the question open till consensus arrives.
CAclubindia
