Dear frds / experts,
An individual proprietor is running a MSME manufacturing industry.... Actually it was started during the F.Y.2018-19. Since it is a newly started industry, there is no profit.... obviously it contains only LOSS. At the same time, he is also a managing director of a small company, who is earning director salary. Now my question is,
1) whether we have to file a seperate IT RETURN for that MSME industry? Else we can file that loss income along with that individual IT return who is already earning director salary?
2) If so, which ITR should be selected?
3) whether the loss of MSME adjusted in the director salary?
4) Does this case need to be audited??
Earliest reply would be greatly appreciated...
Thanks in adv / Maya.
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Income tax return filing doubt
Replies (3)
1. No separate ITR for proprietor(ship) & Individual assesse.
2. ITR3.
3. No, it is to be carry forward. But its advisable to capitalize it and declare no loss, if eligible..
4. Yes, if eligible business having aggregate income above BEL. In case of capitalization of the expenses, no tax audit.
After commencement of business activity , even if loss, can not capitalize it. it will remain business loss.
Thank u both for ur prompt reply......actual sales turnover for that proprietorship business is less than Rs.1 Cr. Now how should I show that loss and Do this case require tax audit??? plz kindly advice.....
Thanks in adv / Maya.
Thanks in adv / Maya.
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