29 September 2020
Sir, One of my friend is a partner in a firm. The Partnership firm was begun in the FY 2018 - 19 and the turnover for that financial year is only 2 to 3 lakhs and ended up with loss. Due to various reasons, his firm could not continue its business and became inactive in the subsequent financial year, i.e 2019 -20. The partners have no idea of continuing the business in future. As such, can they file ITR for FY 18-19 with a Loss and if so, is it necessary to go for Tax Audit? Or, can they remain without filing ITR for FY 18-19. Further, can they file a NIL return for FY 19-20 ? How to formally close their business for Income tax purpose?
29 September 2020
They can file ITR for FY 18-19 with a Loss and it is not necessary to go for Tax Audit. Yes, file Nil return for next year and surender PAN to close business.
CAclubindia
