Menu
DEBTORS WRITTEN OFF
In balance sheet from 4 years debtors are out standing which amount not received in future what provision in income tax and how to written off
Replies (10)
Quick Summary
As far as Income tax act is concerned , deduction under Income tax is allowed under certain conditions .
pass entry
Bad Debts A/c Dr
To Trade Debtor's A/c Cr
( Bad debts written off )
Before write off , please discuss with your company CA or other professionals CA .
pass entry
Bad Debts A/c Dr
To Trade Debtor's A/c Cr
( Bad debts written off )
Before write off , please discuss with your company CA or other professionals CA .
Enter the journey voucher as
Bad Debts A/c Dr
To Trade Receivables / Debtors
If it is huge amount then shift the part of the amount to upcoming financial year
Bad Debts A/c Dr
To Trade Receivables / Debtors
If it is huge amount then shift the part of the amount to upcoming financial year
Where is the entry of provision for doubtful debts?
In Income Tax only banks are allowed deduction for doubtful debts.
In Income Tax only banks are allowed deduction for doubtful debts.
Bad debts written off allowed for all
Provision for Bad and Doubtful Debts
As per section 36(1)(viia) of the Income Tax Act, 1961 only banks and financial institutions are allowed deduction in respect of the provisions made for bad and doubtful debts. No other assessee is allowed to claim the
As per section 36(1)(viia) of the Income Tax Act, 1961 only banks and financial institutions are allowed deduction in respect of the provisions made for bad and doubtful debts. No other assessee is allowed to claim the
Refer Circular 122016. When trade receivables are became bad then those are directly written off as bad debts ..
Only banking entities requires provisions, why others require provisioning like standard , substandard , doubtful / bad , loss assets ?
Refere 36(1)(vii) of income tax act read with section 36(2)
Only banking entities requires provisions, why others require provisioning like standard , substandard , doubtful / bad , loss assets ?
Refere 36(1)(vii) of income tax act read with section 36(2)
Only banks can avail deduction of provisioning others not.Provision of debtors in all cases is an important aspect to ascertain the true and fair position of debtors.
Bad Debts doesn't require provisions..If it's completely written off as bad then what is the need for provision ?
Burden of proof wi be on the assessee..They can prove it if there is assessment..
Burden of proof wi be on the assessee..They can prove it if there is assessment..
First place your query correctly.Its wrong. Bad debts are charged off to pl.
First know the process.
First know the process.
Bad debts are allowed ,Only banking companies and subject to rural advance as per RBI Master circular, Bad debts more than Rs 1 lacs with PAN reporting in ITR is must
Recent Topics :
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
Related Topics :
CAclubindia
