26 July 2013
Madam/ Sir, One of my clients has been filing ITR4 manually for last 2-3 years (since inception of proprietorship) with almost nil income and carry forwarding the depreciation thereon. Now the client has joined a job during 2012-13. He is not sure wether he would continue the business or not. Now as his salary income exceeds 5 lacs, his return is to be filed electronically. What to do now? should he continue filing ITR-4 or switch to ITR-1. what should I suggest him?
27 July 2013
Thax sir, but then he has to forgo loos/ depreciation he has been carrying fwd. also won't it invite a scrutiny from ito when he will compare this yr's return with previous years?
29 July 2013
In case of no plan of continuing business, filing ITR-1 only the best option because carry forward of business loss anyway cannot setoff with salary income since he joined the job now.
In case there is no decision yet about business, better to file ITR-4 with mentioning carry forward losses as well.
So he want to carry forward the losses, he must file ITR-4 only. if he filing ITR-1 there is the end of all the losses
Also better to close the business activity properly and make the books completed.
CAclubindia
