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Sundry Debtors

27 April 2018

Ours is Sole Proprietor firm dealing in ISO consultancy services with turnover upto 10 lakhs for the last 7 years.

Some of our Clients not paid us for the last 3 to 5 years and invoices submitted still the amount is not paid. Some of clients closed the organisations.

Can we show the not received amount (sundry debtors of 3 years back) from the clients as LOSS and show in IT Returns under expenses?

Please advice

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8 Replies

Rudra Pandya (9 Points)
Replied 27 April 2018

You can claim the expense on account of bad debt.

1 Like

CA CS NITIN MAHAJAN (CA ) (273 Points)
Replied 27 April 2018

Yes, you can claim the irrecoverable amounts as bad debts in ITR

1 Like

Mohammad Rafiuzama (83 Points)
Replied 27 April 2018

Thank you Sir,

Aamir Ansari (Student) (101 Points)
Replied 27 April 2018

if debtors are showing in balance sheet and the amount is irrecoverable, deduction for bad-debts can be claimed in income tax u/s 36(1)(vii).

1 Like

Mohammad Rafiuzama (83 Points)
Replied 27 April 2018

Sir, my turnover is below 10 lakhs. I am not maintaining books of accounts.

Aamir Ansari (Student) (101 Points)
Replied 27 April 2018

tum pr income tax nhi lagega bhai...

1 Like

vinodkumargupta (proprietor) (115 Points)
Replied 28 April 2018

you can debit irrecoverable amount of your client pending since long in your books of account . it is a allowable expenditure u/s 36 of income tax act.

1 Like