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
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Tax saving on provision
Replies (7)
Quick Summary
Yes it's a deductible expense.
Provision for doubtful debts - not allowed
Provision for depreciation - not allowed, only depreciation calculated as per the income tax act is allowed.
Mtlb provision allowed nahi h actual expenses hi allowed h?
Sec 30 to 37 under profits and gains from business and Profession.g.⁰
| 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.
Read sec 36(2)
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