I have a query in set-off and carry forward of losses. As per the provisions, we are allowed to set-off business losses (non-speculative) with capital gains. But is it compulsory to set-off or can an assessee pay the tax on capital gains and carry-forward the business loss to the subsequent year?
07 October 2016
For set off and carry forward of losses, you cannot have a break in between. Further, to avail the benefit of set off, you have to file the return on due date.
All details are filed in return. Query is whether it is necessary to set off business loss with capital gains or can the business loss be carried forward so that it can be set off with business profits in the following year.
Based on my understanding of the bare provisions of the Act, it appears that the assessee is given an option.
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