Dear All,
Please let me know the requirement about Bad Debts writte off allowability under Income Tax Act when the huge dues are not received from one of the big client, Any Specific case law, circular or notification about that.
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BAD DEBTS
Replies (4)
For comditions, just refer Section 36(1)(vii).
HI Dear,
Baddebt shall be allowable as deduction subject to certain conditions as specified in section 36(1)(vii). Pl. refer it.
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Dear CA Chaitanya, Please provide me any specific case law or notification regarding Bad Debts written off ( if its more than 20 Cr)
Originally posted by :CA Chaitanya |
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| " | For comditions, just refer Section 36(1)(vii). If the bad debt is actual then it has to be allowed as deduction. There is no monetary limit for such derduction. | " |
BAD DEBTS ALLOWABILITY COMES AS FOLLOWS
ASSESSEE SHOULD WRITE OFF THE DEBT AS BAD IN BOOKS
HENCE MERE PROVISION FOR DEBTS IS NOT ALLOWED.
ON REALISATION EARSTWHILE ALLOWED BAD DEBTS IS TAXABLE.
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