https://www.taxtmi.com/article/detailed?id=7993 Waiver of loan constitutes a capital receipt and is not taxable as a business perquisite since it is a monetary receipt; the business-perquisite provision does not apply to cash loan waivers. The remission provision for trading liabilities covers previously allowed trading deductions and does not extend to cessation of non-trading or capital liabilities that were not claimed as deductions. Accounting treatment should reflect the capital nature of the waiver by crediting capital reserves rather than profit and loss. Deeming provisions that seek to tax capital receipts are problematic and should not be used to tax loan waiver. en-us Tue, 08 May 2018 17:31:40 +0530 Tue, 08 May 2018 17:31:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=7993 Waiver of loan constitutes a capital receipt and is not taxable as a business perquisite since it is a monetary receipt; the business-perquisite provision does not apply to cash loan waivers. The remission provision for trading liabilities covers previously allowed trading deductions and does not extend to cessation of non-trading or capital liabilities that were not claimed as deductions. Accounting treatment should reflect the capital nature of the waiver by crediting capital reserves rather than profit and loss. Deeming provisions that seek to tax capital receipts are problematic and should not be used to tax loan waiver. Articles Income Tax Tue, 08 May 2018 17:31:40 +0530 https://www.taxtmi.com/article/detailed?id=7993