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CA SONI KRUNAL (Querist)
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29 May 2010 What is the tax treatment of net banking fraud loss of Rs. 7 lacs?

What is the situation if account under consideration is personal account of director?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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29 May 2010 Loss due to net banking fraud in a business account can be claimed as a business loss.

Establishing of a nexus for keeping company's funds in Director's personal a/c would make the company eligible for claiming the same as a loss.

However, if the director is a salaried person, no tax treatment is available unless he is engaged in any other business activity and it can be proved that the said a/c is being utilised for the purpose of such business.

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