Deduction for bad debt and provision for bad and doubtful debt.

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....umn B thereof, shall be allowed as a deduction in computation of income chargeable under section 26. Table Sl.No. Specified assessee Amount of deduction A B C 1. (a) A scheduled bank, other than a bank incorporated by or under the laws of a country outside India; or (b) a non-scheduled bank; or (c) a co-operative bank, other than- (i) a primary agricultura....

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....of a country outside India; or (b) a public financial institution or a State Financial Corporation or a State Industrial Investment Corporation; or (c) a non-banking financial company. Not more than 5% of the total income of a tax year computed before making any deduction under this clause and Chapter VIII. (2) Any amount of bad debt, or part of it, in the tax year in which such amount....

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....) applies,-- (i) only that amount which exceeds the credit balance in the provision for bad and doubtful debts account made under that sub-section shall be allowed as deduction; (ii) such amount shall be allowed only when the assessee has debited any amount of bad debt or part thereof in that tax year to the provision for bad and doubtful debts account made under that sub-section....