Loss net profit I.t. return filed allowed

Question BankCategory: Income TaxLoss net profit I.t. return filed allowed
Kollipara sundaraiah asked 9 months ago

Sir,
Sec 44ab audited I.t. return filer professional income(hospital) Assess net profit loss in f.y.20-21.loss reason Assess purchases of medical equipment value rs:60 lacs on dt:20-05-20 and depreciation claimed Rs: 9 lacs net loss show in books.
Question:
1assess net loss I.t return filed audit allowed in I.t. act.
2.net profit show compulsory in f.y.20-21.

1 Answers
Aditya answered 9 months ago
  1. As per detail provided in your question, Books of accounts are audited and assessee has claimed loss in PGBP head. and your may have applied set off of this loss as Business loss other than speculative business can be set off against any head of income except except income from salary. LOSS if any left after set off can be carried forward upto 8 assessment years for adjustment of income in coming years.
  2. It is not compulsory to show profit in the next year. If you are in loss even in next year then this loss will be carried forward to next year after set off. (maximum upto 8 assessment year.)
  3. If there is no profit in next 8 assessment year then this loss will lapse and it cannot be adjusted from the profit of 9th year onwards.
  4. These 8 years will be calculated separately for each year loss. Like loss of AY 2020-21 can be adjusted upto AY 2028-29 and in the same way loss of AY 2021-22 can be adjusted upto AY 2029-30. 
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