C.A. Sandeep Wawhal (CA, PGDFM, BCom) (1831 Points)
16 March 2019Friends,
Advance given to employee not recoverable transferred to Profit and Loss account as Sundry Balance Written off, whether this is allowable deduction under income tax act ?
In my opinion this is not loss from operation and hence will not allowed.
Kindly clarify.
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 16 March 2019
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1831 Points)
Replied 16 March 2019
Sir,
We also can say that, advance given to employee against future salary which will become payable after utilization of future service for the company. Accordingly, it is yet to be incur for the purpose of business.
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 16 March 2019
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1831 Points)
Replied 16 March 2019
it might be adjust against salary but employee left with salary and irrecoverable amount is over and above balance salary payable.
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