Bed debts

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Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2014 Sir When Income tax is allowed to writte of debtors

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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09 September 2014 There is no time period mentioned in the Income Tax Act.

Only two conditions are to be satisfied:
1. The bad debt should be written off in the name of the debtor.

2. The amount which is claimed as bad debt should have been treated as income in any previous year.