How to write off a loan given to a company?

Mayank Arora (Querist) 06 March 2017 This query is : Resolved
I was the director of a small private limited company. In this capacity, I gave a loan to the company. I left the company thereafter but the existing directors of the company defaulted in giving my money back. I did not take any legal action against the company because I know it is bankrupt so it would be a further waste of time and money.

I have been submitting a statement of personal assets & liabilities to the IT dept and this loan has been shown as an asset for the past 3 years. How do I remove this going forward since I know I won't be able to realize this? How do I explain this to the IT dept?

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Guest (Expert) 06 March 2017
Any informal solution to your casual query may not help you.

You have the need to contact a CA, discuss in detail for getting formal process explained to you and adopted by you and the company.

Guest (Expert) 06 March 2017
Agreed with Senior Advocate/Senior Expert Mr.P.S.Dhingra.You could also contact the CA Club of this same forum and could Post it there.

Guest (Expert) 06 March 2017
Dear NJS Rajkumar,

Thanks for agreeing with me.

Kumar Doab (Expert) 06 March 2017
CA Club;

www.CAclubindia.com

Your CA can help you.

Ms.Usha Kapoor (Expert) 07 March 2017
Agree with PS.Dhingra Ji. Dhingra Ji is Right. ou raise your query in CA Club.

Adv. Yogen Kakade (Expert) 07 March 2017
The IT department might ask you about the attempts of recovery done by you. Merely saying that, "I did not take any legal action against the company because I know it is bankrupt so it would be a further waste of time and money" does not solve the purpose.
And yes, you need a tax expert to guide you.

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