bad debt recovered
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 June 2011
wheather baddebt recovered is taxable in business income in the year of receipt?
if business has discontinued and then baddebt recovered after some year, what should be the adjustment?
if business has discontinued and then baddebt recovered after some year, what should be the adjustment?
23 June 2011
bad debts recovered will be taxable as follows
:- if the bad debts were Deducted from Profit when occurred
than the amount recovered will be taxable under "business & profession head", the fact that business has been discontinued will not have any impact
:- if the amount of bad debts was not allowed to be deducted from profits when the bad debts occurred than no treatment will be required and the recovered amount will not be taxable, also the dis-continuity of business will not have any impact in this case
:- if the bad debts were Deducted from Profit when occurred
than the amount recovered will be taxable under "business & profession head", the fact that business has been discontinued will not have any impact
:- if the amount of bad debts was not allowed to be deducted from profits when the bad debts occurred than no treatment will be required and the recovered amount will not be taxable, also the dis-continuity of business will not have any impact in this case
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