Income tax query

This discussion addresses the treatment of TDS receivable shown on a balance sheet that is deemed unrecoverable from the tax department. While TDS receivable is essentially personal income tax and generally not allowable as an expense from a tax perspective, advice suggests reversing the TDS asset back to the customer ledger and claiming it as bad debts, which are allowable expenditures. Communication with suppliers is also recommended if the TDS isn't reflected in Form 26AS.