Mahadev (age 66) discontinued his wholesale trading business w.e.f. 10.09.2019. He wrote off a sum of ₹2,70,000 due from Sankar in the previous year 2017-18 which was allowed as deduction in the tax assessment. Now in Ma
CS Executive · Tax Laws · PYQS · June 2021
Mahadev (age 66) discontinued his wholesale trading business w.e.f. 10.09.2019. He wrote off a sum of ₹2,70,000 due from Sankar in the previous year 2017-18 which was allowed as deduction in the tax assessment. Now in March, 2021 Mahadev recovered ₹90,000 as final and full settlement from Sankar. What is the tax consequence of the receipt of amount by Mahadev for the assessment year 2021-22 ?
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Income Tax
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