Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Current year business loss

Sandeep Kamath (Officer) (26 Points)

16 December 2008

Hello ,

I'am Sandeep Kamath from Mangalore. It would be very helpful if you all can give me a answer to the following query,

Is it mandatory to set off current year business loss against current year capital gain or is there a provision to carry forward the loss to the next year?

Regards,

Sandeep Kamath

Reply
Follow
Share

4 Replies

Jitender (Chartered Accountant) (8724 Points)
Replied 16 December 2008

it can't be carried forward.

it has to be set off in current year first.

Upgrade to CAclubindia Pro. Subscribe Now!

CA RAMESH KUMAR AHUJA (CA, DISA, LLB) (5452 Points)
Replied 18 December 2008

Yes, it is to be set off against CY profit and balance may be C/F to next year

Sripada M (CA) (365 Points)
Replied 18 December 2008

As per my knowledge,

You have to set off in the current year only and the same cannot be carried forward

Correct me, if i am wrong....!!!!

Nirmala (Articles Student) (107 Points)
Replied 18 December 2008

Any loss under the head, ‘profit and gain of business,/profession’ other than speculation loss and depreciation, can be set off against any other business income or any other heads of income, except salary income, in the same AY.

After such setting off, the remaining amount is yet a loss, If the loss insgreater than income from any other business or income from any other head, then such loss can be carried forward up to 8 AYs. On carrying forward to subsequent years, this loss can be set off only against business income and not against any other head of income.