Waiving of farmers loan

b.umapriya (Artlicled Assisstant) (53 Points)

08 December 2009  

Let me give u a situation:

The Govt has sanctioned loan to a farmer 5 years ago. the new govt has waived it during the current year. what is the accounting treatment to be given and on what basis tax should be calculated?

i think i got the answer by myself. thanks frnds for trying to help me.