banner_ad

Loan Written Off

This query is : Resolved 
Profile Image

Profile Image

(Querist)
11 October 2019 A private limited company is engaged in finance activities. It provides loans to other companies. Out of this a loan is irrecoverable and the company wishes to write off that loan thru Profit & Loss Account. Is the loan as such written off an allowable expenditure?
Profile Image

Soumitra Basu

Profile Image

Soumitra Basu (Expert)
12 October 2019 yes it will be treated as bad debt
Profile Image

Darshan Jain

Profile Image

Darshan Jain (Expert)
15 October 2019 Pl clarify whether lending is really the principal object of the company under consideration?

If you could prove the business nexus of lending only then alone can you claim it as bad debts under section. 36(1)(vii)
Profile Image

swasti

Profile Image

swasti (Querist)
18 October 2019 Thanks for the advices. But if lending comes in ancillary objects, then?
Profile Image

Darshan Jain

Profile Image

Darshan Jain (Expert)
18 October 2019 Loans extended without direct business nexus are not allowable as bad debts. The write-off would be disallowed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
02 May 2026
Experience Audit Manager

AGGARWAL SAMIR & CO

New Delhi

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details