Tax calculation on Creditors written off

Dear Anususha,

           It is considered as Deemed Income u/s. 41, coz the amount has already been written off in previous years. Hence, to that extent, tax amount would have been reduced in those years. Hence, this year,it has to be included as Deemed Income

I agree wid above reply but Mr. Narayana i just want to ask one thing to you that can we claim some specific amount of creditor wrtten back to reduce our tax libility in f.y. 2009-10, rest will be claimed in f.y. 2010-11 as tax liability will be managed in 10-11.

If there is any possibility to reduce liability of tax in such nature/case.

Dear Harpreet,

        Claim cannot be made, because Rs.15L is written back in the financials. However, u can write back 7.5L in 2009-10 and Rs.7.5L 2010-11 in the financials. If u do so, deemed income wud be only Rs.7.5 in 2009-10