Unsecured loan write off is taxable

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Quick Summary

If you've borrowed money for your business and are settling the debt for less than the full amount, you might be wondering about the tax implications of the written-off portion. Generally, the amount of an unsecured loan that is written off is considered taxable income unless it was specifically used to purchase a capital asset. Companies often pay tax on the remaining amount when they settle debts through write-offs.

Nitin Daga

Nitin Daga (Querist)

15 March 2020 I borrowed some money and put into business now I am not reCeiving the money back but to whom i borrowed the money cannot wait so I am paying 40 % of the amount borrowed and offer for settlement they also agree but how to write off the remaining amount
or the remaining amount write off will be taxable

Nitin Daga

Nitin Daga (Querist)

15 March 2020 if a company goes for settlement how it settled the remaining amount

Nitin Daga

Nitin Daga (Querist)

15 March 2020 if a company goes for settlement how it settled the remaining amount

Read more at: https://www.caclubindia.com/experts/unsecured-loan-write-off-is-taxable-2787439.asp

Nitin Daga

Nitin Daga (Querist)

15 March 2020 big companies when settled amount they pay tax to renaining amount if they write off or either they do not write off the amount