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Set off of business loss due to no turnover with interest in

Tax queries 232 views 3 replies

Hi all,

There is loss from business (assessee firm- AY 2016-17) as there is no turnover this year, while there are indirect expenses like salaries, telephone exp etc. Business loss can normally set off against income from other sources like FD interest.

But in this case since there is no turnover for business, will there be problem while setting off interest income with loss?

I am worried that the return might be defective [as the utility expects 8% of turnover as income from business if the net income is positive where as the turnover here is nil.]

 

I am using ITR 4

Kindly advise

Replies (3)

When the FD interest income is included in business income, utilities show such error. Because TO in that case is not zero.

Thank you for the reply.

The case is, business turnover fo firm is NIL

salaries 130000

so, business loss is 130000.

FD interest is 250000

So will the tax be calculated on 250000/-?

or

on 120000(250000-130000=120000)?

 

 

You can pay tax on Rs.120000/-


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