Hi
Please note that business loss cannot be adjusted against salary income.
How do I get business losses deduction in ITR?
I am a salaried person and along with that have business losses. How do I get a deduction in ITR?
Asked 8 years ago in Income Tax
However business loss can. E adjusted against any other income (like FD interest etc) or you can carry forward the business loss and adjust it next year against the business income.
Please feel free to call / revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Thank you for the answer. Salaried income is separate, I understand that. If my part time business was generating profits, I would have added it in other income section. The problem is that part time business has generated losses and I am unable to add it in the other income sources section as it does not accept -ve numbers. I am using cleartax to file. Any advice on how to adjust it in other income sources section in the cleartax form or any other section. I do not want to carry it forward to next year as we I am closing the part time homes based business.
Asked 8 years ago
Hi,
Firstly, if you have losses in your business and your salary income ia more than 2.5 lacs, then you need to get your business accounts audited.
If you don't want to go for audit, you have to take route of presumptive taxation where you have to show minimum deemed profit of 8% on your turnover.
If you need any assistance in filing your return , please feel free to reach out to me at
I earn my salary from a job in an MNC and part time business is totally a separate venture not at all linked to my current job. Salaried income is less than 10L p.a for which I have proper Form 16 and am able to easily file ITR for it. A new addition this year is part time business accounts which have created a bit of confusion. For FY 16-17 part time business has generated net losses which I am able to calculate myself. Does this fact change your answer? Happy to send you an email separately if needed.
Asked 8 years ago
No these facts do not change my answer.
In you case you have two options as mentioned earlier:
1. You need to get your business accounts audited from a chartered accountant; or
2. If you don't want to go for audit, you have to take route of presumptive taxation where you have to show minimum deemed profit of 8% on your turnover.
Please feel free to call / revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
You cannot set-off business loss against salary income. You can only carry it forward to the next years.
Also, if you are going to claim business loss, then you will have to get your accounts audited.
Trust this clarifies.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Hiii
you have to file ITR Form 3/4S in this case , Business Loss can be carry forward and can adjust in future profit if you file your ITR on or before due dates i.e. - 05-08-2017.
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