Suppose one person has given a loan in a company and that company got closed in the year. Then what is the treatment of amount which is not recoverable? Also what is the impact on Income Tax for the person who gave the loan?
Krutika Khedkar (Chartered Accountant) (77 Points)
06 June 2018Suppose one person has given a loan in a company and that company got closed in the year. Then what is the treatment of amount which is not recoverable? Also what is the impact on Income Tax for the person who gave the loan?
CA Karan Sathe
(CA )
(564 Points)
Replied 06 June 2018
1) No Impact on income tax. If you expect that it is not receivable in future then w/off it to P & L (Not allowable expenditure) .
2) If transaction relates to current year then the person is required to show it in Form 3CD under respective clause details of loan given u/s 269SS. , if applicable.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
