Income Tax

[Sudha Hegde]

Plaese tel me the recent notifications for the BAd debts written off?

[Anoop Agrawal]

Bad debts should be irrecoverable and debtors account should be w/off by claiming the amount in P&L A/c. Kindly also go through Section 36 (1) & (2) of Income Tax Act. 

AI Summary

Bad debts deduction requires irrecoverability and formal write off before claiming in the profit and loss account under tax law. Bad debts are deductible only where the debt is irrecoverable and the debtor's account has been written off, and the amount is claimed in the profit and loss account; compliance with Section 36(1) and (2) of the Income Tax Act is relevant to entitlement.