Liability to pay deposits ceased
This query is : Resolved
23 May 2019
I owed a debt to a relative who recently died. There is no any legal heir to that relative accordingly, my liability to pay that deposit has been seized and I need not to pay this amount. Now what is treatment of that amount in my hand? Whether it is an income? If yes then under which section The Income Tax Act?
Please guide.
Please guide.
24 May 2019
If the debt was incurred for business purposes, cessation attracts tax u/s 41(1).
25 May 2019
In above query, suppose that amount was not for business then in my books of accounts.....should I pass an entry by debiting account of the party and crediting capital account.
Any provisions attracts for taxation under I.T. Act.
Any provisions attracts for taxation under I.T. Act.
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