Set of carry forward Losses

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sanjay

sanjay (Querist)
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20 October 2010 Can Business loss or depreciation carry forward losses adjust against income from other sources?

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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20 October 2010 No, Carry forward Business loss cannot be set-off with any other income head, this can be set-off only with Business income.(sec 72)

However, in first year of loss,i.e., when loss is occured then you can inter head set-off (Sec 71)

Regards!!!
Dinesh S. Adhikari

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 October 2010 Unabsorbed Depreciation can be set off against Business Income or any other head of Income.

For more info on "SET OFF AND CARRY FORWARD OF LOSSES"--See following link---

http://wirc-icai.org/wirc_referencer/Income%20Tax%20&%20Wealth%20Tax/Set%20off%20And%20Carry%20Forward%20of%20Losses.htm

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taxindiaconnect

taxindiaconnect (Expert)
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20 October 2010 As per section 32(2) of IT Act, the unabsorbed depreciation of earlier years becomes the depreciation of current year, hence that can be set off against income of the current year from any other source.

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