Waiver of loan
Querist : Anonymous
In your case in case the payment liability is wavied(i.e discounted) then the portion of waving amount is revenue nature and credit or debit to P&L account in the books of received and payer.
For any more clarification please write question clearly.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
The question is whether this one time settlement or 60% waiver in both the types of loan is a capital receipt or revenue receipt. For the loan taken for purpose of assets, there are case laws that it would be a capital receipt. For the waiver of working capital loan, there are case laws which say that waiver of such loan is revenue in nature & taxable. But the thing I wish to understand is that the when the company took the loan, it was of capital nature shown as secured loan in balance sheet. On writing off such loan, does the character changes or would it still be capital?
I shall told you the wavier portion is should be revenue nature.
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
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