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Help regarding current year loss

vkbothra (Learning ) (690 Points)

18 September 2009

I am having a problem regarding current year loss. One of my friend is working as a propritor in a propritorship firm. In that firm he got profit, which is taxable, and in his personal balance sheet he is paying interest on borrowed capital, which is invested in his firm. Now how to fill ITR-4 and where to mention that current year interest loss, mean in which column? Is it possible to merge personal and propritorship firm's balance sheet?

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7 Replies

CA Anurag Garg (Chartered Accountant) (339 Points)
Replied 18 September 2009

no this is not the case of loss to be set off, above interest is admissible as business expenditure from P & L only

Interest u/s 24 b can be set off since it comes under the House property head

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vkbothra (Learning ) (690 Points)
Replied 18 September 2009

Now u mean, we cant get any deduction regarding this, interest paid? Or he have to write in the head of income from house and property interest paid section?

CA Anurag Garg (Chartered Accountant) (339 Points)
Replied 18 September 2009

u can deduct interest from business income but its not the case of sec 24 b

vkbothra (Learning ) (690 Points)
Replied 18 September 2009

Can we get deduction in ITR -4, if yes than where we ll write in form.

CA Anurag Garg (Chartered Accountant) (339 Points)
Replied 18 September 2009

yes in profit & loss account there in ITR 4 there is a column for Interest

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vkbothra (Learning ) (690 Points)
Replied 18 September 2009

The problem is, he have to balance sheets. One of the propritorship firm and second for his personal, in personal he is getting income from other heads too. In P &L account, he is writing interest as paid, but this interest he is paying for borrowed capital in direct to his firm name, and he is paying interest in personal balance sheet because he had taken unsecured loan from other persons, now can he combined both interest paid in P&L's interest said column?