27 October 2013
Can any one say what is the order of set off of losses in case of PGBP in the following example? Suppose, Mr. Vijay has two business. A) Chemical business B) Textile business. From business A he has profit and from business B he has loss in the current financial year and also he has b/f losses of last previous year from the same business B. What is the order of priority?
28 October 2013
Dear Sir, Is it not advisable to set off previous year loss first in case of deficit of profit to cover the loss of current year and therefore current year loss may be c/f and benefit of one more assessment year would be there.????
28 October 2013
Vijay, it is not about what is advisable or not. Even your tax return form won't allow you to set off previous year losses first.
Remember, in the tax computation, the income of all the businesses under PGBP is clubbed together without any distinction to profit or gains. So the set off happens automatically.
CAclubindia
