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Waiver of Loans: Accounting Treatment and Tax Implications

July 23, 2019[2019] 107 taxmann.com 327 (Article)
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Loans are taken by any person in order to fulfill their financial requirements. Such loans are used for the purpose of acquiring capital assets as well as working capital requirements of any enterprise. Though loans obtained are obviously required to be repaid but on certain occasions due to some financial crunch or on account of some negotiations between the parties, loans are waived by the financial creditor/operational creditor.
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