Section – 36 - Increase in deduction limit
in respect of provision for bad and doubtful debts
According to existing provisions,
certain types of banks are allowed deduction in respect of provisions for bad
and doubtful debts limited 7 ½ % of the total income and amount not exceeding
10% of aggregate average advances made by rural branches of such bank.
It is proposed to increase the
said limit from 7 ½ % to 8 ½ %.
The amendment will be effective
from 1st April 2018.