Rectifying closing stock for previous year

Prakash Daga (2 Points)

29 August 2019  

Hi,

For the previous financial year ,  I seem to have made a mistake in Closing Stock position - shown much lower than what it actually was .    This is causing an issue when filing this year's Income tax as the Gross Profit are hugely inflate and not commensurate to the Cost of acquisition of goods.

 

Any suggestions on how I can take it forward ?

1-  Is there any way to correct closing stock position of previous year

2-  Is the right way to carry this error and pay higher income tax ?  Will the Tax department not question the huge Gross Profits  (which is primarily because closing stock carried forward is wrong)

 

Please help!!