No turnover, setting off of loss
This query is : Resolved
Guest
Guest
(Querist)
02 August 2016
Dear experts,
There is no turnover in a year for a partnership firm. However there is interest on FD to the extent of Rs 300000/-. There are expenses like salary, electricity exp etc. So there will be a business loss . The question is can we set off this business loss with Income from other sources (bank interest) or carry it forward? [As there is no turnover, setting off seems difficult to me. Also, even if a small turnover is shown, 44AD audit will be needed.]
Please advise.
There is no turnover in a year for a partnership firm. However there is interest on FD to the extent of Rs 300000/-. There are expenses like salary, electricity exp etc. So there will be a business loss . The question is can we set off this business loss with Income from other sources (bank interest) or carry it forward? [As there is no turnover, setting off seems difficult to me. Also, even if a small turnover is shown, 44AD audit will be needed.]
Please advise.
02 August 2016
C/fd business loss can't be set off against IFOS. Inference - Section 72(1)(i).
Guest
Guest
(Querist)
02 August 2016
Thanks a lot! that was helpful
Guest
Guest
(Querist)
02 August 2016
Actually I was talking about current business loss( without turnover due to fixed overheards)
02 August 2016
Error is regretted.
Expenses incurred is not to earn income since turnover is zero. So inter head adjustment will be disallowed and c/fd also will be denied not being a business loss.
Expenses incurred is not to earn income since turnover is zero. So inter head adjustment will be disallowed and c/fd also will be denied not being a business loss.
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