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

Set off and carry forward of losses

29 April 2019

Sir,
Is it necessary to set off current year business losses before setting off brought forward business loss?
(both being non-speculative)

Eg.
Income from HP = 60,000

Income from business A= 1,00,000

Current year loss in business B= 50,000

B/f loss in business A= 70,000
B/f loss in business B= 80,000

Please tell me what will be the minimum possible GTI in such a case.

Can we first set off b/f losses of 1,50,000 with PGBP income of 1,00,000
(50,000 being c/f further)

Then set off current year business loss with HP Income.

Or is it necessary that i must first set off current year loss from pgbp income only?

Reply
Follow
Share

3 Replies

shilpi (student) (780 Points)
Replied 29 April 2019

Yes.. It's necessary to set off current year business losses against same head of income Sec 70.And then inter head adjustment is allowed Sec 71.

Upgrade to CAclubindia Pro. Subscribe Now!

shilpi (student) (780 Points)
Replied 29 April 2019

And order of loss of set off should be current year exp/dep/scientific research exp/family planning expenditures then Brought forward loss, after that unabsorbed dep, capital exp on scientific research, family planning expenditure

shilpi (student) (780 Points)
Replied 29 April 2019

You know what, same question I asked at other platform, their opinion was first current year expenditure then previous year exp/losses.Don't you think this type of provision are not in interest of assessee.