02 August 2013
Suppose we have a profit of Rs. 7.00 Lacs in Current year and brought forward losses of Rs. 11.00 Lacs so while taking setoff of brought forward losses in current year Deduction under Chapter VIA upto Rs. 1.00 Lac and Basic exemption Limit of Rs. 2.00 Lacs should be considered thus reducing the brought forward loss only by Rs. 4.00 Lacs and balance to be carried forward Rs. 7.00 Lacs
02 August 2013
Kapil you have to set off Rs. 7,00,000/- of loss with current years profit. You can't take benefit of Deduction first & then use set off & carry forward.
02 August 2013
No you cannot take benefit of Basic exemption limit also if your carried forward loss is more than your current year's profit (as in ur case)
CAclubindia
