Provision for bad and doubtful debts for banks is governed by separate deduction limits, rural advance computation and anti-double-deduction rules. Deduction for provision for bad and doubtful debts is available to banks and certain financial entities subject to specified percentage limits, accounting requirements and anti-double-deduction safeguards. Banks may claim separate deductions for urban branch advances and rural branch advances, with an additional limited deduction linked to income from redemption of securities. The computation of rural branch advances is based on aggregate average advances calculated branch-wise from monthly outstanding advances. Actual bad debts and provision for doubtful debts operate as distinct deductions, and only a single consolidated provision account is permitted.
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.
Provision for bad and doubtful debts for banks is governed by separate deduction limits, rural advance computation and anti-double-deduction rules.
Deduction for provision for bad and doubtful debts is available to banks and certain financial entities subject to specified percentage limits, accounting requirements and anti-double-deduction safeguards. Banks may claim separate deductions for urban branch advances and rural branch advances, with an additional limited deduction linked to income from redemption of securities. The computation of rural branch advances is based on aggregate average advances calculated branch-wise from monthly outstanding advances. Actual bad debts and provision for doubtful debts operate as distinct deductions, and only a single consolidated provision account is permitted.
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