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Deferred Tax

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 April 2011 A company had created Provision for Bad Debts which were not allowed as deduction under Income tax Act, subsequently company created deferred tax assets on the amount disallowed.
Whether company can claim deduction under section 36(1)(vii, if Bad Debts are written off against the Provision earlier made?
Whether the Deferred Tax Assets created earlier will be reversed or not?


06 April 2011 yes, will be allowed as a deduction in the year in which bad debts have been written off

DTA would be reversed



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