• Answer of this question

    SIR...PLZ GIVE MORE EXAMPLE FOR THR SECTION 36(1)(VIIA)
    Davneet Singh's image
    Davneet Singh

    Example 1

    Suppose I make a Sale of 50000 to A

    A paid me only 30000 and settled his account

    In this case,20000 is Bad Debts

    I will get this deduction of Bad Debts in PGBP

     

    Example 2

    Suppose I make a Sale of 50000 to A

    A is expected to pay me only 30000

    Hence,20000 is my expected loss for which I make Provision for Bad Debts

     I will not get deduction for this provision for bad debts

     

    Example 3

    Suppose I make sale of 40 lacs

    As per past experience,I book 5% Provision for bad debts i.e. 4000000*5%=200000

    In this case,no deduction will be available for this 200000

     

    Example 4

    Suppose Bank make sale of 40 lacs

    Bank books 5% Provision for bad debts i.e. 4000000*5%=200000

    In this case, bank deduction will be available for this 200000

     


    Written on Sept. 19, 2016, 11:16 p.m.