Bad debt deduction: allowable only for debts written off in accounts and previously included in income. Amendments require bad debts to be 'written off as irrecoverable in the accounts of the assessee for the previous year' for deduction; omit certain provisos; redefine 'scheduled bank' to list specified banks and exclude co-operative banks; and revise sub-section (2) so deduction is allowable only if the debt was taken into account in computing income in the year it was written off or an earlier year, or if it represents money lent in the ordinary course of banking or money lending, with clause (iii) and (iv) limited by inserted references to relevant earlier previous years.
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Bad debt deduction: allowable only for debts written off in accounts and previously included in income.
Amendments require bad debts to be "written off as irrecoverable in the accounts of the assessee for the previous year" for deduction; omit certain provisos; redefine "scheduled bank" to list specified banks and exclude co-operative banks; and revise sub-section (2) so deduction is allowable only if the debt was taken into account in computing income in the year it was written off or an earlier year, or if it represents money lent in the ordinary course of banking or money lending, with clause (iii) and (iv) limited by inserted references to relevant earlier previous years.
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