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For a debt to be classified as bad, assessee has only to write it off as irrecoverable in its accounts

For claiming any debt as a bad debt, one has to satisfy following two conditions :(1) Debt is written off as bad debt in the Profit and Loss Account by making corresponding entry in the party account. (2) Debt is taken in to account in computing the income of the assessee of the previous year in which debt is written off or in earlier previous year.
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