Is it mandatory to cliam expenditure in any year, even in the absence of Income/Turnover? Can such expenditure be claimed in the succeeding year?
praveen
(Chartered Accountant)
(6971 Points)
Replied 23 September 2009
Yes expenses and income of an year has to be accounted the same year.
It depends from the method of accounting cash or mercantile.
income tax department view is like this " Income post poned in income lost ".
However if you have incurred loss in an year you can set off such losses with profit of the next year. Subject to rules and regulations.
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9058 Points)
Replied 23 September 2009
agree
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
CAclubindia
