Good Morning...
what is maximum bad Debts we can show in balance sheet in a year...
6 Replies
sabyasachi mukherjee
(27574 Points)
Replied 03 June 2022
Bad debt provisions are regulated in income tax act under the head profits and gains from business and Profession.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 03 June 2022
Whatever you want but you have essential proofs to justify the amount of bad debts
CA Aakarsh Jain
(CA)
(10431 Points)
Replied 03 June 2022
Yes there is no limit if you have valid proofs
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 08 January 2023
Show? what does that mean? you should disclose your actual baddebts. I am not able to understand what does this question actually mean?
Manish
(CA)
(1172 Points)
Replied 08 January 2023
I think you are asking about the amount of provision for bad debts an entity can make.
There is no limit. It is just an estimate based on past data.
However, the entity cannot claim it as deductible expense under income tax.
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