• ITR 3 Balance Sheet vs Point 6; Previous Years losses, Tax from Schedule TSPS

1. I had business losses in three previous years (say adding up to 100) and profits last year (say of 4) so I used the previous years losses to offset the profit last year leaving me with an amount of 96 to be carried forward. This year I have had profit too (say 2) and I offset that with the remaining business losses from previous years. But from some reason the system is taking the remaining previous years losses as 100 and not 96. So after the offset this year it is coming to 98 and not 94 as it should come. Am I doing something wrong? Is there a place to input the previous years remaining losses as 96 aka what remained after the offset last year? Or is this a glitch?

2. I am using sec 44ad to declare BI. Last year my profits were higher than 6% so I declared the real amount. And I filled in the entire Balance sheet. I did not get any error or warning message. this year I have made losses and am declaring the profit at 6%. But when I fill in the balance sheet the system is prompting me to not fill in the entire balance sheet but just some details required in point 6 which is supposed to be for ‘No accounts’ case. But I have accounts and BS ready. What should I do? Should I fill in the entire BS or just the details they are asking for in point 6 (cash in hand, bank balance, sundry creditors and debtors)?

3. I am getting some kind of error for the schedule TSPS (or something like that; seems to be related to foreign which i dont have). In that schedule it is giving me a warning message when I am leaving it blank. And then at the final tax calculation stage I am again getting an error saying some tax needs to be paid and it is taking me to that page. However the tax payable is showing as 0 anyway. 

I think there was a post about something similar sometime ago in this sub. If someone can link to that that would also be helpful.
Asked 28 days ago in Income Tax

1. Please check schedule CFL of ITR A.Y. 2023-24. If it shows figure of 96 then check ITR of current year i.e. A.Y. 2024-25

 

2. Only financial particulars and not BS

 

3. Consult telephonically

 

4. Not required

 

For detailed discussion you may opt for phone consultation

 

Vivek Kumar Arora
CA, Delhi
4885 Answers
1069 Consultations

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Solutions to Income Tax Filing Issues

1. Carry Forward Business Losses


  • Issue: System shows previous years' losses as 100 instead of 96.

  • Solution: Check Schedule CFL in last year's ITR (should show 96). Ensure it's correctly reflected in the current year's ITR. If issues persist, it might be a system glitch.

2. Section 44AD Declaration


  • Issue: Prompt to fill only minimal details under point 6.

  • Solution: Only fill the required details (cash in hand, bank balance, sundry creditors, and debtors) as prompted.

3. Schedule TSPS Error


  • Issue: Errors and warnings despite no foreign transactions.

  • Solution: Ensure Schedule TSPS is blank. If errors continue, consult a tax professional.

4. Declaring Gifted Flat


  • Issue: Declaring a gifted flat under "Other Exempt Income".

  • Solution: Not required. Gifts from parents are exempt and don’t need to be reported this way.

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
269 Answers
4 Consultations

5.0 on 5.0

1. You can fill it manually

3. Select option 'No'

Vivek Kumar Arora
CA, Delhi
4885 Answers
1069 Consultations

5.0 on 5.0

  1. Carry Forward Business Losses:

    • If the Schedule CFL for the current year is uneditable, it is likely a system glitch.
    • Alternatively, you can file a manual correction.

  2. Section 44AD Declaration:

    • Fill only the required details (cash in hand, bank balance, sundry creditors, and debtors) as prompted by the system.

  3. Schedule TSPS Error:

    • Ensure Schedule TSPS is blank.
    • Check for any pre-filled or incorrect entries and clear them out.

  4. Declaring Gifted Flat:

    • There is no downside to voluntarily declaring the gifted flat, as long as the information is accurate.
    • Keep all relevant documents for your records.

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
269 Answers
4 Consultations

5.0 on 5.0

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