loan,banking and credit
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Provision for bad-debts and income tax rules?


Can I provide for 50% of Debtors as " Provision for Bad Debts " by debiting the profit and loss account in a particular year.
Will such a Bad-Debt expense be allowed for purpose of Computation of Income for Income Tax Returns.
What are the I-Tax rules in respect of the above ?
A detailed explanation is desirable.

Thanks in advance..............

From what I know, a specific allowance for doubtful debt is allowable for tax deduction but not a general allowance at whatever percent. If it's a general allowance you have to add back that expense for tax computation purposes. If it's a specific allowance made for an identified debtor and with good reasons, then the specific allowance is allowed as a tax deduction.
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