Income from creditor

if a creditor doesn't tale his money back this income will record in which account and what is the head name for it
Replies (3)
Quick Summary
When a creditor does not reclaim their money, this income is typically recorded under 'Profit & Loss' for Business & Profession. Remission of a creditor is considered taxable income under Section 41 of the relevant tax laws, impacting your business's profitability.

Dr./Cr. written off
Can you please explain in detail

Remission of creditor is chargeable to tax under section 41 under the head profit & loss of business & profession.

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