How to show expenses if no revenue generated in profession (during lockdown)

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An IT consultant faced zero revenue during the 2020-21 lockdown but incurred expenses for future business and investments. They sought advice on how to declare these expenses and carry forward losses on their Income Tax Return (ITR) without maintaining books of accounts. The consensus suggests filing through the new Income Tax portal, which allows for expenses to be declared even with no revenue, and that speculative income and short-term capital gains would be treated separately.

amit

amit (Querist)

27 December 2021 Hi,
I am practicing IT consultant , but during CORONA LOCKDOWN (FY 2020-21) my revenue was zero, but I was Working from home for consulting bids as well parallelly working on some investment, which will generate revenue in subsequent years, Hence incurring expenses , which i would like to carry forward in subsequent years

How do i show those expenses on ITR under profession with "No Book of accounts"

BTW, Little speculative income have generated from intraday and short term share trading, but believe that will go under speculative and STCG respectively???

Please help

Kindly help

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 December 2021 Charge such expenses as business expenses in the p and l of ITR and carry forward the loss for adjustment in future business income.
Yes, it will go speculative and short term capital gains

Message likes : 1 times

amit

amit (Querist)

28 December 2021 thanks sir, i file my return through cleartax.in and if i put zero as revenue it doesn't accept the business, probably income tax will also not accept....
similar issue i faced in last year i.e., FY 2019-20, but due to last minute i just filled up return without showing expenses ....
so any way I can get rid of this situation in cleartax platform and also last year undeclared expenses can be shown now or somehow taken care of.....????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 December 2021 Use new income tax portal for filing ITR.

amit

amit (Querist)

28 December 2021 can u guide me in person/oncall/online, am ok to pay applicable fee....ITRs to be corrected starting AY 2020-21 or may be 1 or 2 before ... am staying in Delhi...and guidance needed for current FY as well...