Biren discontinued wholesale trade in medicines from 1 st July, 2013. He recovered ₹1,50,000 in October, 2015 being a bad debt which was written-off and allowed in assessment year 2012-13. He has eligible brought forward
CS Executive · Tax Laws and Practice · PYQS · June 2016
Biren discontinued wholesale trade in medicines from 1 st July, 2013. He recovered ₹1,50,000 in October, 2015 being a bad debt which was written-off and allowed in assessment year 2012-13. He has eligible brought forward business loss of wholesale trade in medicines of ₹1,70,000. The consequence of bad debt recovery is that— (A) It is chargeable to tax (B) It is eligible for set-off against brought forward business loss (C) The brought forward business loss is taxable now (D) 50% of the amount recovered now is taxable.
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Income Tax
Related Questions in this Topic
- Senthil employed in a nationalized bank incurred ₹60,000 towards medical expenditure of his parent who is a senior citiz...
- Income tax assessment of Kuber was completed on 15-12-2018 for the assessment year 2016-17. There is an error apparent i...
- Income tax assessment of Ajay was completed determining the income at ₹8,40,000 as against the returned income of ₹5,40,...
- A resident having transaction with a non-resident who has filed form 35D for advance ruling, can withdraw the applicatio...
- When the Advance Pricing Agreement (APA) has been entered into, it is valid for not more than __________ consecutive pre...