Provision for bad and doubtful debts disallowable or nom business income?

Provision for bad and doubtful debts is typically considered a necessary expense for a business and is therefore allowed as a deduction from business income. This provision is made to account for the possibility that some customers may not be able to pay their debts, and is a common practice in accounting to ensure that the financial statements accurately reflect the true financial position of the business.

However, the specific treatment of bad and doubtful debts may vary depending on the accounting standards and regulations in place in a particular jurisdiction. It is important for businesses to consult with their accountants or tax advisors to ensure that they are correctly accounting for bad and doubtful debts in accordance with the relevant rules and regulations.