Hi, I incurred costs in business since last 2-3 years....but not able to allocate the same in ITR, since it was pre-revenue phase....
would also be looking for immediate help in Current AY ITR filing , i stay in delhi
PLEASE HELP! - aaresponse @ yahoo.com
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How to allocate business cost (business setup investments/costs) incurred in previous years in ITRs
Replies (10)
Quick Summary
Preliminary expenses can be claimed over 5 years in equal installments from the year of revenue generation
Can we claim it 100%, and how do we claim, under which section of ITR3
Do I need to record those expenses in current ITRs
Need professional help in this regard , to review previous and current ITR (current AY) to accordingly plan
You can't claim 100% of preliminary expenses ..Even if it shown in accounts, only 1/5 is allowed for Income Tax Purposes
ok thanks ,
how about if i show these costs in current ay.....with noo revenue....can it be feasible and ok to do that
Is revenue generation started ?
No yet, expected in next FY
But you can't claim entire expense in one FY
ok, lets say i had costing of around 200000 in FY 2020-21, and no revenue.
In ITR of FY2020-21 (AY2021-22), Can I show that as proprietor business/profession with zero revenue and actual costs, which will be considered as loss to business and could be carried forward in next FY to be setoff with revenue in later years
it means real time reporting of costs in the same year when the cost incurred
Preliminary expenses has seperate rules
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