setting of previous year loss in comapny balance sheet

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mc jayaprakash (Querist)
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29 June 2011 in the current year in a company thre is a net taxable income of about 19,32000 laksh and the tax works out to Rs. 5,97,000 ther was a loss in the last financial year to the extent of 17,20000 loss can we setoff from the current year profit before arriving the tax liability.

Please reply ASAP

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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29 June 2011 The losses are brought forward for setting off them. Please also check provisions related with MAT also, while deciding the tax liablity.

CA Vijay Kumar Walande

CA Vijay Kumar Walande (Expert)
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30 June 2011 Dear Jayaprakash

Business loss can be brought forward and can be set off with current year's profit.

Since the loss is more than current year's profit. MAT provision will apply

Compute MAT after calculating book profit considering business loss.

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