Provision For Bad Debts

[mayank shah]

Dear Sir

Please Ask Provision for Bad Debts is Allowed expense in Income tax View ?/

[Ganeshan Kalyani]

In my view it is an eligible for deduction under Income Tax. However I welcome views of Experts to share their views as well. Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

Provision for bad debt is allowed as an expenditure.

[KASTURI SETHI]

Thanks to both experts Sh.Ganeshan Kalyani, Sir and Sh.MARIAPPAN GOVINDARAJAN, Sir as I am gaining knowledge about Income Tax, Balance Sheets and accounting treatment through this forum.

[Mahir S]

Sir,

I am of the view that such amount is allowed as expense BUT with a debit to the bad debt expense account (which appears in the income statement) and a credit to the provision for doubtful debts account (which appears in the balance sheet).