06/02/2019

Recovery of bad  bebts (sec.41 (4) ( Author - Admin )


Recovery of bad  bebts sec.41 (4)  :- 

Where any bad debt has been allowed as deduction under section  36(1)(vii) and the amount subsequently recovered on such debt is greater than the difference between the debt and the deduction so  allowed,the excess realisation is chargeable to tax as business income of  the year in which the debt is recovered.

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