Hello,
-Mr X has received proceeds of Rs.10,00,000 from transfer of a capital asset (LTCG)
-of the proceeds a hand loan was given to Mr Y of Rs.2,00,000
-Mr Y has issued 2 promisory notes to re-pay this amount within a period. But of late he has been delaying the payment and this has led to Mr X funds being blocked.
Is there any way by which Mr X can show in his ITR that the loan is ir-recoverable and he will be required to pay tax on only Rs. 8,00,000 or is he liable to pay tax on the whole proceeds?
The law doesn't state any such reliefs. Please correct me if im wrong. Also mention the case laws if there are any.
Thanks
CAclubindia
