Tax treatment under income tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2017 what will be the tax treatment of write of debtors and creditors under income tax. and also please mention relevant section for tax treatment.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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04 June 2017 Write off credits amount to Income, while write off Debtors amounts to Bad debts can be written off as expenses.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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04 June 2017 Debtors written off will either be bad debts or discount allowed depends on its nature. Writing off creditor is treated as discount received.

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