Deduction for bad debts: specified financial assessees may claim prescribed deductions for provisions and written off irrecoverable debts. Deduction for provisions and bad debts is allowed for specified financial assessees subject to the Table's prescribed caps and related conditions. Bad debts written off are deductible in the year of write off if previously taken into account in computing income or arising from ordinary lending; recoveries adjust prior deductions. For assessees under the provision limits, only amounts exceeding the provision account balance and debited to that single account for all advances qualify. Provisions are not treated as written off debts, and amounts recognised under notified income computation standards are deemed written off when irrevocable.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deduction for bad debts: specified financial assessees may claim prescribed deductions for provisions and written off irrecoverable debts.
Deduction for provisions and bad debts is allowed for specified financial assessees subject to the Table's prescribed caps and related conditions. Bad debts written off are deductible in the year of write off if previously taken into account in computing income or arising from ordinary lending; recoveries adjust prior deductions. For assessees under the provision limits, only amounts exceeding the provision account balance and debited to that single account for all advances qualify. Provisions are not treated as written off debts, and amounts recognised under notified income computation standards are deemed written off when irrevocable.
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