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.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.

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