tax Audit

This query is : Resolved

Ravi Prasad (Querist)
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15 May 2009 dear all,
Whether recovery of bad debt included in the ambit of income for the purpose of tax audit u/s 44AB ? And any other inclusion/exclusion of income for this purpose ? Kindly give the section reference too..
Thanking you.

chetan soni

chetan soni (Expert)
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15 May 2009 No, as the same has been considered as trunover in earlier year, hence no to be included in trunover for the purpose of sec 44AB.

This will form part of business income, if you have already claim it as deduction in earlier years.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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15 May 2009 In addition to wht chetan said ...
Any expense which has allowed in earler years if received during the year then it would be taxable in the year of receipt.

So bad debts if allowed earlier on recovery whould be income of this year.

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