Provision for Bad and doubtful debts in case of Banks - Section 36(1)(viia)

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..... Financial Corporation, State Industrial Investment Corporation and Non Banking Financial Company In the case of a Foreign Bank 8.5% of total income computed before deduction under this section and before deduction under chapter VI-A PLUS 10% of Aggregate Average Advances made by rural branches 5% of total income computed before deduction under this section and before deduction under chapter VI-A 5 .....

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..... by the rural branches of the scheduled bank. Deduction for Actual Bad debts i. No deduction is allowed under section 36(1)(vii) in respect of actual bad debts. ii. The actual bad debts should be debited to the provision for bad and doubtful debts made under section 36(1)(viia) . iii. Where the actual bad debts exceeds the credits balance in the provision for bad and doubtful debt account, then ded .....

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..... ten off relating to rural advances allowable only in excess of the credit balance in the provision for doubtful debts as per section 36(1)(viia) of the act. Rural branch meaning A branch of a scheduled bank or a non-scheduled bank situated in a place which has a population of not more than 10,000/- according to the last preceding census of which the relevant figures have been published before the .....

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