SafeEcollege.com Provisions in Brief Type of Loss to be carried forward to the next year(s) Income against which carried forward loss can be set off in next Further, When Losses of any year is more than the Income of that year then the remaining Loss can be taken over to the next years and then set off. That is what called Carry Forward of Losses. [Note: Sometimes people get confused about these two terms as in many places we could see these two words together i.e. Carry forward and Set off of Loss Set off of losses. Set off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. A set-off could be an intra-head set-off or an inter-head set-off. a. This Loss of One Sources/Head can be adjusted against Income of other Source/Heads. This is called Set- Off of Losses. Further, When Losses of any year is more than the Income of that year then the remaining Loss can be taken over to the next years and then set off. That is what called Carry Forward of Losses.
Unabsorbed business losses can be carried forward and set off against profits from any business from A.Y. 2000-01. There is no need to continue the same business in which the loss was incurred. Depreciation can be carried forward and set off against the profits from any business in the succeeding assessment year up to A.Y. 2001-02. Carry forward of losses Losses which could not be set off against income of the assessment year , do not lapse , but are allowed to be carried forward to be set off against income of subsequent years . Carry forward of losses for each head is governed by different sections which define the no’s of years it can be carried forward for, against SET OFF AND CARRY FORWARD OF LOSS UNDER THE INCOME-TAX ACT Loss from exempted source of income cannot be adjusted against taxable income If income from a particular source is exempt from tax, then loss from such source cannot be set off against any other income which is chargeable to tax.
7 Jul 2017 Set off means adjusting the losses against the profit of that financial year. Income Losses can be carried forward to next Assessment Years if Unabsorbed depreciation and carry forward of losses which can be set- gains' can be carried forward and set-off in future years, only against Table 1. Computation of depreciation on the machine for accounting purposes and tax purposes. SafeEcollege.com Provisions in Brief Type of Loss to be carried forward to the next year(s) Income against which carried forward loss can be set off in next Further, When Losses of any year is more than the Income of that year then the remaining Loss can be taken over to the next years and then set off. That is what called Carry Forward of Losses. [Note: Sometimes people get confused about these two terms as in many places we could see these two words together i.e. Carry forward and Set off of Loss Set off of losses. Set off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. A set-off could be an intra-head set-off or an inter-head set-off. a. This Loss of One Sources/Head can be adjusted against Income of other Source/Heads. This is called Set- Off of Losses. Further, When Losses of any year is more than the Income of that year then the remaining Loss can be taken over to the next years and then set off. That is what called Carry Forward of Losses.
Unabsorbed business losses can be carried forward and set off against profits from any business from A.Y. 2000-01. There is no need to continue the same business in which the loss was incurred. Depreciation can be carried forward and set off against the profits from any business in the succeeding assessment year up to A.Y. 2001-02. Carry forward of losses Losses which could not be set off against income of the assessment year , do not lapse , but are allowed to be carried forward to be set off against income of subsequent years . Carry forward of losses for each head is governed by different sections which define the no’s of years it can be carried forward for, against SET OFF AND CARRY FORWARD OF LOSS UNDER THE INCOME-TAX ACT Loss from exempted source of income cannot be adjusted against taxable income If income from a particular source is exempt from tax, then loss from such source cannot be set off against any other income which is chargeable to tax.
Set off of losses. Set off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. A set-off could be an intra-head set-off or an inter-head set-off. a. This Loss of One Sources/Head can be adjusted against Income of other Source/Heads. This is called Set- Off of Losses. Further, When Losses of any year is more than the Income of that year then the remaining Loss can be taken over to the next years and then set off. That is what called Carry Forward of Losses.