Fire your tax related queries and i would get it solved!!!

[john302928]

Hi, I have a query, If we get our account audited this year to carry forward the losses for the coming years, then next year if we make profits then can we file the ITR by our self (next year) by adjusting the previous year loss with that year profit ? or if we get our account audited then we have to get audited for coming years also to adjust profits with the carried forward losses?

Say for example if X has F&O losses of 5lk and gets audited his account in the FY 17-18 and carry forward his loss to the coming year. Then nin the FY 18-19 he makes profit in F&O of 2 lk then can he file the ITR for FY 18-19 by himself by adjusting this 2lk profit with the carried forward loss of 5lk and show the tax liability as zero for that year? or he has to get his account audited for FY 18-19 also to adjust this profit with the carried forward loss.

Please respond quickly. thanks

 

[canikhil]

Hi, I have a query, If we get our account audited this year to carry forward the losses for the coming years, then next year if we make profits then can we file the ITR by our self (next year) by adjusting the previous year loss with that year profit ? or if we get our account audited then we have to get audited for coming years also to adjust profits with the carried forward losses?

Say for example if X has F&O losses of 5lk and gets audited his account in the FY 17-18 and carry forward his loss to the coming year. Then nin the FY 18-19 he makes profit in F&O of 2 lk then can he file the ITR for FY 18-19 by himself by adjusting this 2lk profit with the carried forward loss of 5lk and show the tax liability as zero for that year? or he has to get his account audited for FY 18-19 also to adjust this profit with the carried forward loss.

Please respond quickly. thanks

1. Whether audit is applicable is subject to turnover, profit %. If turnover is below 1cr and profit is above 6%, then you may file ITR-3 without audit. You can adjust the past losses here without a worry.

2. However, if the turnover is above the audit limit or where the turnover is below audit limit but profit is below 6% of the turnover, then audit will be required.

What does this means? that audit applicability in one year doesn't necessarily have effect on audit applicability on future years.

 

[Aman1]

What if turnover is below 1cr and there is loss? do we need to file ITR3 without audit? and also if there is no income? I mean my wife has no income from salary(housewife) and her turnover is less than 1cr and is in loss (futures only). is she required to file ITR3 or no need to file return?

 

[traderniftybull]

1. Whether audit is applicable is subject to turnover, profit %. If turnover is below 1cr and profit is above 6%, then you may file ITR-3 without audit. You can adjust the past losses here without a worry.

2. However, if the turnover is above the audit limit or where the turnover is below audit limit but profit is below 6% of the turnover, then audit will be required.

What does this means? that audit applicability in one year doesn't necessarily have effect on audit applicability on future years.

- Can one adjust whole of previous year loss in one go, from current year profit.
- What if previous year loss is larger than current year profit. Can one carry forward balance loss to next year.

Thanks

 

[canikhil]

What if turnover is below 1cr and there is loss? do we need to file ITR3 without audit? and also if there is no income? I mean my wife has no income from salary(housewife) and her turnover is less than 1cr and is in loss (futures only). is she required to file ITR3 or no need to file return?

If she has no other income, then filing of return is not mandatory in her case. Having said that, income tax department will still send her the notice based on the SFT/AIR reporting. However, still she cannot be forced to file the return.

So you may file the return voluntarily, if you want to. Nevertheless, keep a record of all the trades done and turnover computed properly (ensuring that it was below 1 cr).

 

[canikhil]

- Can one adjust whole of previous year loss in one go, from current year profit.
- What if previous year loss is larger than current year profit. Can one carry forward balance loss to next year.

Thanks

Question 1 - yes, you can adjust

Question 2- unadjusted losses will be carried forward. Normal business losses - derivatives, commodities trades etc are carried forward for eight years. Speculative losses (intra-day equity) are carried forward for 4 years.

 

[Satya.]

if we do audit dis yr,do we need 2 do it every yr? @canikhil

 

[Satya.]

If she has no other income, then filing of return is not mandatory in her case. Having said that, income tax department will still send her the notice based on the SFT/AIR reporting. However, still she cannot be forced to file the return.

hw mch TO needed or ny calculation on which IT will send her notice?
say she has jst 20L TO trading EQ,will IT send d notice?
or IT send a notice even if sm1 has jst a low TO?

 

[canikhil]

hw mch TO needed or ny calculation on which IT will send her notice?
say she has jst 20L TO trading EQ,will IT send d notice?
or IT send a notice even if sm1 has jst a low TO?

You will still end up receiving the notice. That doesn't mean you have to file the return in case your income is below the limit

 

[aryansheokand91]

From this year onwards; ITR 4 have some columns in FINANCIAL PARTICULARS OF BUSINESS which are MANDATORY now… I leave them blank last year as these were not mandatory…..E15: SUNDRY CREDITORS E19: INVENTORIES E20: SUNDRY DEBTORS E22: CASH-IN-HAND…Kindly guide me regarding about these columns and please keep in mind that last year I filled 0 in all these columns