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Demanding back paid tax

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Neev Garg

60 Points Posted on 09 October 2022

Let us suppose I paid tax in year 2018-19 but in May 2019 some amount due to debtors become unrecoverable so now can I ask to return the tax paid by me in the year 2018-19 ?

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Quick Summary

If you paid tax in a previous financial year and subsequently found some of that income to be unrecoverable due to bad debts, you generally cannot reclaim the tax already paid. However, you can claim these unrecoverable debts as an expense in the current tax year. This will reduce your taxable income and, consequently, your tax liability for the present year.