Foreign Exchange Gain & Loss

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Ashok (Querist)
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29 September 2008 Last year there has certain amounts in a account shows debit balance in Balance sheet which was foreing exchange loss and the same has been not claimed in P & L. the annual return has been filed. Now what should the treatment in current year for that Account. what are the ways to resolve the same.

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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29 September 2008 Write off in CY

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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30 September 2008 These will amount to prior period expenses and may get disallowed in IT assessments. Therefore although you may be writing them off during the current yesr, it may be advisable to file revised return to claim them in the year of incurrence.

Ashok

Ashok (Querist)
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03 October 2008 Last year there has certain amounts in a account shows debit balance in Balance sheet which was foreing exchange loss and the same has been not claimed in P & L. the annual return has been filed. Now what should the treatment in current year for that Account. what are the ways to resolve the same.

I can not revised my last year return bcoz due to revise the return my P&L Ratio has been demaged. so are the other ways. I want to treat it in current year.
1. Should I Write off in my capital A/c. (Person is Proprietorship)
2. Should I move to P & L.
3. or any other way. Please Guide Me.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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06 October 2008 1. By writing off in capital account you wiil be loosing tax benefit.
2. You can, but tax benefit may be lost.
3. There is no other way.

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