Is Provision Allowable expense

This query is : Resolved

Sonu Agarwal (Querist)
Follow

09 April 2008 Hi,
Friends & Respected Experts.

Is Provision for I.Tax & Provision for Bad & Doubtful Debts allowable expense?

If yes then under what section?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

09 April 2008 Provision is not allowed as deduction

R.V.RAO

R.V.RAO (Expert)
Follow

10 April 2008 NO PROVISION OF INCOME TAX OR BAD AND DOUBTFUL DEBTS IS ALLOWED AS DEDUCTIBLE EXP FOR IT PURPOSE.
IN SUPPORT OF THE ABOVE , I QUOTE below CLAUSE( vii) of sub section 1 of section 36 (under other deductions allowed for business ) OF INCOME TAX ACT WHICH SAYS THAT the amount of (any bad debt or part thereof which is written off as irrevocable in the accounts of the assesseee for the previous year.
so only those amounts written off as bad debts but not provision for bad debt is allowed as deductible under IT act.
R.V.RAO

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

10 April 2008 Provision for Bad & Doubtful Debts is allowable but Bad & Doubtful Debts is allowable deduction for tax computation of business.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

BALU RAJADURAI

T.N.Reddy

Shubham Jain

Narendra

Mahasweta Deb

Subscribe Now

Is Provision Allowable expense

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

Accountant

GST CONSULTANCY

GST CONSULTANT

CA Final