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unsecured loans
what would be the treatment of unsecured loan write off....it will be treated as indirect income or will be treated as capital receipt I.e it is taxable or will be added to proprietors capital account......plz reply
Replies (2)
if loan is working capital purposes then it is income as per sec 41 & if for acquisition of capital asset purchases then asset cost reduced by loan written off amount as per case law Steel Authority of India
Ok ....Thanks....what if we have to write back in future then it's effect on P&L/Bal Sheet
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