https://www.taxtmi.com/article/detailed?id=7187 A deduction for bad debts is allowable when the debt is written off in the assessee's books by debiting the profit and loss account and either crediting the customer's account (thus closing it) or creating a provision/reserve deducted from sundry debtors; recoveries of amounts earlier allowed will be taxable when realised. Judicial authorities support that written off accounting entries suffice, and taxpayers should retain records to track write offs and subsequent recoveries. en-us Sat, 07 Jan 2017 10:01:15 +0530 Sat, 07 Jan 2017 10:01:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=7187 A deduction for bad debts is allowable when the debt is written off in the assessee's books by debiting the profit and loss account and either crediting the customer's account (thus closing it) or creating a provision/reserve deducted from sundry debtors; recoveries of amounts earlier allowed will be taxable when realised. Judicial authorities support that written off accounting entries suffice, and taxpayers should retain records to track write offs and subsequent recoveries. Articles Income Tax Sat, 07 Jan 2017 10:01:15 +0530 https://www.taxtmi.com/article/detailed?id=7187