HI All,
One of my client has a loss of Rs 7,70,000/- for th year 2009-2010 after writting back the creditors of Rs 15,00,000/- Now if I consider this amount ( Rs 15,00,000)as other income then I have to pay a tax on it which will be huge.
So Pls suggest me what I have to do in this case
Dear Anususha,
It is considered as Deemed Income u/s. 41, coz the amount has already been written off in previous years. Hence, to that extent, tax amount would have been reduced in those years. Hence, this year,it has to be included as Deemed Income
I agree wid above reply but Mr. Narayana i just want to ask one thing to you that can we claim some specific amount of creditor wrtten back to reduce our tax libility in f.y. 2009-10, rest will be claimed in f.y. 2010-11 as tax liability will be managed in 10-11.
If there is any possibility to reduce liability of tax in such nature/case.
Dear Harpreet,
Claim cannot be made, because Rs.15L is written back in the financials. However, u can write back 7.5L in 2009-10 and Rs.7.5L 2010-11 in the financials. If u do so, deemed income wud be only Rs.7.5 in 2009-10
CAclubindia
