when we make any provision for example provision for doubtful debts, provision for depreciation
is there any tax benefit allowed
please reply
tnk u in advance
Provision for doubtful debts - not allowed
Provision for depreciation - not allowed, only depreciation calculated as per the income tax act is allowed.
| Originally posted by : Anamol Agrawal | ||
 |
Mtlb provision allowed nahi h actual expenses hi allowed h? |  |
Yes, only actual bad debts are allowed.
Provision for doubtful debts is not an allowable expense.
If you write off the receivable as bad debts, it is allowable expense.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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