Written of Deposit of Director in Private Limited Company

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Girish Limbachiya (Querist)
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02 January 2026 Dear Sir,

We have one Private Limited Company. Once the Director is also a shareholder in the company and has 50% shares in the company. The director has given a loan to the company for business. The same loan has been reported in DTP-3 with ROC and in the Financials of the company, which disclosed with Income tax . The amount is around 1.50 crore.

Now the company is not in position to repay it and want to write of this amount in company's financial.
so My questions are :
1. What would be tax treatment in company . If this will treated under other income , and company have profit .... this profit can adjust against past carried forward loss ?
2. Director can claim it as business loss or capital loss in his personal tax return ?
3. If Director having other income during the years ....the business loss or capital Investment loss can be adjust again other income ? and can save tax ?

Request you please advise in this matter .

Best Regards
Girish Limbachiya

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