INCOME TAX ACT

explanation is required for u r question...........  what cr. bal ?

Dear Sir,

Writing back of creditor's balances  is treated as an "Income" taxable u/h PGBP.

Writing off Debtor's Balances is allowed as deduction subjkect to fulfilment of condition that it should have been written off in the books as well + it should have been considered as an item of revenue of advance made..

Amir is correct for Debtors and creditors………

Generally liabilities not required to pay by the entity – to be credited to P&l a/c.

Regards

K.Ilayaraja

provided balances should have been earlier written-off in the books of account.

Dear swaps sir i agree with you,

it is implied that liabilities not required to pay means routing through profit and loss account.

Regards

K.Ilayaraja