Business losses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2013 Dear Experts,
If a person has 2 companies-one had made huge business losses and other has made profit,how can i make use of business loss to adjust my profit- Is there any legal provision for the same?

2. Can i adjust my previous business losses against current profit ? and pay tax only on remaining amount?

Suggest tax planning!!

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 June 2013 Yes. business loss can be set off with the business income.refer sec.71 & 72 of income tax for details

your un adjusted loss can be carry forward for 8 years.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 But sir profit is available in one company business loss in another company, i want to make use of the business loss of the latter against the first company.Hence reduce tax liablity.Please suggest

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 June 2013 Yes. sir. since you are the proprietor of both the business, there is provision for adjust one business loss to other business profit while computing income on consolidated level. except speculation business loss you can adjust normal business loss

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2013 Can u please provide with the provision details and any case law if any available

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 June 2013 sir. no need of any case law,this is as per the act allowable. please refer the sec.71 & 72