Are you wondering if you ever have to face the taxman when your business is making losses? The answer is a big YES! and even better before the due date. You might want to file a tax return to set off losses of the current year against profits which you start making later ( so that your tax burdern is reduced when you start making profits ).
If you are making losses, watch out for the due dates. If you do not file for your losses before due date, the loss for that year can not be carried forward. ( The only exception to this rule is loss from house property ”“ this loss can be carried forward even if the IT return is not filed in time.)
So, even when the going gets tough, Taxes get going.
This post is written by praveen from Reach Tax. He is reachable at praveen@reachtax.com
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