Advance to employee not recoverable

C.A. Sandeep Wawhal (Chartered Accountant PGDFM BCom.)   (1823 Points)

16 March 2019  

Friends,

Advance given to employee not recoverable transferred to Profit and Loss account as Sundry Balance Written off, whether this is allowable deduction under income tax act ?

In my opinion this is not loss from operation and hence will not allowed.

Kindly clarify.