banner_ad

Business loss

Others 541 views 4 replies

A film producer entered into an agreement with the director. The director began sourcing the manpower and materials to make the film on the basis of the budget as discussed with the film producer. Due to lack of control of the director on the budget estimates, the producer terminated the contract and discontinued the whole film production. Already some money was spent. There will be no income from this film production because it never took off. The money spent cannot be recovered. This will be a business loss. Can the producer claim the expenses incurred in the ITR-4 and show as business loss for the year? 

 

Thanks

Replies (4)

In my opinion u can claim the expense and show business loss because this is a part of your business and U are filling your return every year for the income or loss from all the film as a whole. I mean return is not filled on film basis (i.e. saperate return for separate film).

ya u can claim it...

 

Alright, thank you all. 

Originally posted by : Mihir

A film producer entered into an agreement with the director. The director began sourcing the manpower and materials to make the film on the basis of the budget as discussed with the film producer. Due to lack of control of the director on the budget estimates, the producer terminated the contract and discontinued the whole film production. Already some money was spent. There will be no income from this film production because it never took off. The money spent cannot be recovered. This will be a business loss. Can the producer claim the expenses incurred in the ITR-4 and show as business loss for the year? 

 

Thanks

In income tax there are no requirement to disclose some income to carry forward of businee losses, its is an ordinary activity that someone incures losses without having any income.

However you should have sufficient documentary evidences to support this loss along with agreement with Film Producer (if any)

Go ahead with losses!!!!!!!!!

Go ahead 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details