Comment on Tax loss harvesting

Venu Madhav commented on 27 Mar 2015, 02:49 PM

For the sake of IT:

1) You’ve to consider your turnover as Rs.35 lacs which you’ve mentioned as the sum of all your profits & losses. Note that netting off isn’t allowed in order to compute settlement turnover.

Eg: If you’ve made a profit of Rs.1 lac on one contract and a loss of 1 lac on another contract, your turnover is Rs.2 lacs and not 0. I’m hoping you’ve arrived at 35 lacs by considering the sum of all obligations contractwise.

2) About Audit of books:
If you’ve made a profit: If profit < 8% and if you have no other source of income/income is below taxable income,then books need not be audited.Else Audit required. If profit is >8% no audit required.
If you’ve made a loss: If you have any other source of income on which you’ve to pay Income tax, then you’ve to get your books audited if you wish to carry forward losses. If you have no other source of income/income is below taxable income, then you can carry forward loss without getting your books audited.

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