I have a client who has a proprietorship firm. He wants to claim loss form his buisness so as to set off the loss against individual income. Is this possible? He does not have a tax audit liable to him.
Also what are the expenses he can claim under proprietorship? Documents would be required?
Can he claim his personal investments under 80c as a deduction under his proprietorship firm?
In case of propreitorship business the business is carried on in the name of the proprietor. The name given to his business say M/S ABC & Co is just a way of carrying on his business.
So if the proprietor has incurred any business loss and suppose he has any interest income then he can set-off the business loss against his interet income.
All the expenses wholly incurred for carrying on his business can be claimed as business expenses.
Yes he can very well claim the investments made as deduction u/s 80C while calculating his taxable income.
Vakilsearch.com
Chennai
CA Inter
View Details
CCI
Pro
CAclubindia
