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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2013 if a firm is declared loss of Rs 10 lacs aganst the turnover of Rs 76 lacs for f.y. 2012-13. is section 40 AD is applicable n can he carried forward the loss if he files return before 30.09.13.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 October 2013 I hope you did filed the return before 30 september. In case you did, you would be allowed to carry forward loss. However, please note that you are also required to submit tax audit report under 44AB before 31 October 2013.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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09 October 2013 Set off & carry forward of depreciation is governed by Section 32. Since Section 44AD overrides Section 32, unabsorbed depreciation cannot be set off against profits u/s 44AD.

However, carry forward & set off of business loss is governed by Section 72. Accordingly, brought forward loss can be set off against profits declared u/s 44AD.

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