22 September 2007
Can co operative bank create reserve for NPA and reserve for over due interest against its net profit Is it an allowable expenditure for calculation of Taxable income
24 September 2007
Creation of reserve is appropriation of profit. Provision is chargeable to Profit. Provision for bad debts made by co operative Bank is allowable u/s 36 (viia) of the Income tax Act 1961. Creation of reserve is management's decision subject to RBI guidelines.
CAclubindia
