Accounts and tax effect of investment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2011 If investment in unquoted shares got reduced to zero value. Should it be written off or should create a provision for it?
And if yes will it be allowable expenditure under income tax?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 July 2011 A provision should be made and the same is not allowable as an expense for Income tax purpose unless it is sold.

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2011 But its mv is Zero, no one will purchase..

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 July 2011 no option then carry forward in books. Even if u write off in the books no expense is allowable as per Income tax act.

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