Carry forward loss from ay 16-17 to ay 18-19

Tax queries 254 views 6 replies

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Dear Sir / Madam,

One of the Assessee doing two business. One business (A) under Profit & another one (B) is Loss. But, Both of the calculation his Income is profit. In AY 2016-17 he filed his ITR with Profit Rs. 400000 (A -> Rs. - 50,000 + B -> Rs. 450000)...

As per Auditor's computation Business A is under Loss & B is under Profit...

The Assessee can't file (missed) ITR AY 2017-18. But, He want file ITR AY 2018-19 (As bank's requirements against OD Account). Now, I prepare the statements for FY 2016-17. Business A & B is going to profit with C/F loss to A.

Also FY 2017-18 is under Profit with A & B....

Is it correct preparation or C/F loss from AY 16-17 to AY 18-19....?

Thanks & Regards

RAJA P M

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208838 Points Joined July 2016

Dear,

You can prepare financial statements as per auditor's report and carry forward loss of preceding year should be accounted.

As its actual loss it will reflect in books of accounts. But for IT purpose as return was not filed, and late filed for AY 2018-19, any loss/es will not be allowed for adjustment.

Moreover, prepare both statements (of A & B) separately, only final balance will be clubbed.

Good Luck.

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Thank You for the reply Sir...

So,
What can I do for the loss in the AY 16-17...?
the loss will be transfer to Capital Account in the FY 16-17...??

Can I prepare the Financial Statement for the FY 17-18 as per books...??