Business loss

Others 474 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