Dear All
Please help me in treating Theft of cash according to income tax.
my accountant withdrew Rs.1 lac from the bank, but on the way, when he stopped for some work, the cash was stolen from his bike.
i want to know whether this loss will be considered in my final accounts for calculating income.
also please tell if my annual income in less than the stolen amount, can this loss be carried forward to next year?
This will b treated as Abnormal Loss. Yes it will effect ur Final Accounts.
Yes, this loss can be available as business loss in profit and loss account. The loss can be carry forward if there is no income in the head profit or loss from business or profession, capital gain, HP or other sources. But to get benefit of carry forward, the return should be filed up to due date. (31st july for unaudited parties)
file an FIR, embezellment of cash will be allowed as an expenditure under IT Act.
CAclubindia
