Dear All,
Please let me know the requirement about Bad Debts writte off allowability under Income Tax Act when the huge dues are not received from one of the big client, Any Specific case law, circular or notification about that.
SIVARAMAN (SENIOR EXECUTIVE ACCOUNTS) (136 Points)
19 November 2008Dear All,
Please let me know the requirement about Bad Debts writte off allowability under Income Tax Act when the huge dues are not received from one of the big client, Any Specific case law, circular or notification about that.
CA Chaitanya
(PRACTISING CA)
(4283 Points)
Replied 19 November 2008
For comditions, just refer Section 36(1)(vii).
SIVARAMAN
(SENIOR EXECUTIVE ACCOUNTS)
(136 Points)
Replied 21 November 2008
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Dear CA Chaitanya, Please provide me any specific case law or notification regarding Bad Debts written off ( if its more than 20 Cr)
Originally posted by :CA Chaitanya |
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| " | For comditions, just refer Section 36(1)(vii). If the bad debt is actual then it has to be allowed as deduction. There is no monetary limit for such derduction. | " |
Sujay C Deshpande
(article)
(80 Points)
Replied 26 November 2008
BAD DEBTS ALLOWABILITY COMES AS FOLLOWS
ASSESSEE SHOULD WRITE OFF THE DEBT AS BAD IN BOOKS
HENCE MERE PROVISION FOR DEBTS IS NOT ALLOWED.
ON REALISATION EARSTWHILE ALLOWED BAD DEBTS IS TAXABLE.
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