Query

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Hi, i need urgent assistance on the below query:

 

I have income from salary and am in the 30% tax bracket. I also have a proprietory concern, where the expenditure is more than the income. also here i am getting paid with the TDS effected.

 

I want to know when i file the ITR 4 whether i  need to club both the income and also pay 30% tax on the income from proprietory concern when there is a business loss or leave it with the 10.3% TDS that is applicable for every transaction.

Guidance on this will be welcome.

 

Thanx

Replies (6)
Your salary will be taxable under salary head. The business income will be taxable under PGBP. Business loss cannot be set off against Salary income. It is to be carried forward to next year and will be set off with that years profits (if any). Still the total tax deductions (salary+business) can be utilised towards Tax Payable for the year. If the total deduction exceeds the tax payable, then you can apply for refund.
Your have to file itr4 before 31th july to claim set off business loss
PGBP loss cannot be set off against salary income. Returns should be filed in order to carry forward the losses for the next 8 assessment years.

I agree with aanya. Business Loss cant be set off against salary income.

Income from all heads to be considered together after appropriate set off  wil be ur Gross total income(GTA) from GTA deductions under chapter VI a is considered. On the net income tax is calculated. 

U must show business loss to claim set off against it in future years & U must also file returns before due date to claim this benefit 

S I do agree with above replies.

Originally posted by : CA Amit Jaiswal
Your salary will be taxable under salary head.

The business income will be taxable under PGBP.

Business loss cannot be set off against Salary income. It is to be carried forward to next year and will be set off with that years profits (if any).

Still the total tax deductions (salary+business) can be utilised towards Tax Payable for the year.

If the total deduction exceeds the tax payable, then you can apply for refund.

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