Bad debt eligibility
This query is : Resolved
14 May 2016
Mr. X has given a Loan to a Pvt Ltd. Co. Now, the balance loan is not recoverable from the Company. Also Mr. X has sold a land & has realised gain on the sale in the same year.
Whether Mr. X can set off the loss on non-recovery of Loan with gain on sale of Land?
Please guide.
Thank you
Whether Mr. X can set off the loss on non-recovery of Loan with gain on sale of Land?
Please guide.
Thank you
15 May 2016
Dear Devendra,
Both transaction falls in separate head of Income. Since amount is not recoverable it will be allowed as deduction in BP. Assuming there is no other transaction in BP the same will amount to loss. As per set of provisions Business loss can be set off against business income hence you can set off the bad debts against capital Gain.
Both transaction falls in separate head of Income. Since amount is not recoverable it will be allowed as deduction in BP. Assuming there is no other transaction in BP the same will amount to loss. As per set of provisions Business loss can be set off against business income hence you can set off the bad debts against capital Gain.
16 May 2016
agree with the expert needs no further explanation I feel
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
