Company strike off with loan waiver accounting issues

To reach a Nil balance, you must write off the Deferred Tax Asset, record the Director's loan waiver as income (which will be offset by your 33.34L loss), and distribute the remaining bank balance to shareholders after paying final professional/filing fees.

Thank you so much for the reply. I have some follow up queries in this regard.

1) Can Assets and Depreciation be directly made zero?

2) Can ITR be filed with bank account details that is closed?

(If we keep bank account open then there will be some balance to avoid MAB. It won't be possible to have nil statement)

Voluntary strike-off under STK-2 requires the company to have no outstanding liabilities at the time of filing. If there is an outstanding director loan or any other liability, the STK-2 application will be rejected by the Registrar.

For a director loan waiver before strike-off, here is the accounting treatment:
1. Debit: Director Loan Account (liability side)
2. Credit: Capital Reserve or General Reserve

Note: The waiver of a loan by the director is treated as a capital contribution, not income, provided it is genuinely from the director in their capacity as a director and is documented through a board resolution and deed of waiver.

If the company has ever started business (filed Form INC-20A and commenced operations), you also need:
- Nil financial statements (Balance Sheet showing zero liabilities and zero assets)
- NOC from banks if any bank accounts existed
- Duly notarized Form STK-3 (Indemnity Bond) and STK-4 (Statement of Assets and Liabilities, certified by CA)

If the company has NEVER commenced business (no bank account opened, no INC-20A filed, no transactions): the strike-off is much simpler - just Form STK-2 and basic board resolution.

For the complete step-by-step checklist on closing a private limited company including STK-2 filing, see this [company closure guide for India](https://taxgarden.in/blog/how-to-close-company-india-strike-off-stk-2-winding-up-2026).