Hii guys.
My brother is a salaried employee. As a part time freelancer, he started Photo shoots for marriages and receptions in October (mostly on week ends) and continued till Feb. Income he earned is 35,000 but expenses incurred (including Rent of camera and related equipment, editing charges) for the same is 56,000. Since he is incurring losses he decided not to continue. As of now the loss is Rs. 21,000.
Now since it's not his main line of business and this is one year job and he is not going to continue in future, can he offer it under income from other source and claim 21,000 loss and set it off against salary income...?
It is in the nature of profession which required skills, it cannot be offered under other sources. Prepare a small profit and loss account and balance sheet for the professional income basis only and claim loss under the head Business and profession. Carry forward the loss for 8 years (if not settled against other business income in coming years).
CAclubindia
