Business loss carried forward to next year?

This query is : Resolved

Rajnish (Querist)
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10 February 2010 Dear All,

Please reply as soon as possible.

Business Loss carried forward to Next Year?

If Yes, then how many year we are adjust Loss against profit?

For E.g.
Business Loss Of Rs. 10,00,000/- in F.Y. 2007-2008 and Rs. 5,00,000/- in F.Y. 2008-2009.

Total Business Loss of Rs. 15,00,000/-.
If Business making profit of Rs. 3,00,000/- every year i.e F.Y. 2009-10 onwards.

Then we are claim loss continue Five Year?

Please guide me.

Thanking you in advance

A wainting for your reply.

Regards
Rajnish

Bimal Thacker

Bimal Thacker (Expert)
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10 February 2010 Business loss can be carried forward to next year and can be set off against profits of any business or profession in subsequent years (upto eight assessment year)
In your case if the return of income has been filled under section 139 i.e. within due date of filling return then as per given examples the loss can be setoff.

If the return of loss submitted after the due date, the delay may be condoned if a few conditions are satisfied - Circulerno. 8/2001 dt. 16.05.2001.

However even return filled after due date the depreciation can be setoff for indefinitely period

Rajnish

Rajnish (Querist)
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10 February 2010 Dear Mr. Bimal Thacker

Thanks for your prompt reply,
But i have one doubt.
Eight Assessment year means
If Loss In F.Y. 2008-2009
then claim following A.Y.
A.Y. 2011-12
A.Y. 2012-13
A.Y. 2013-14 to onwards ?
Please guide me.

Regards
Rajnish

Rahul Gupta

Rahul Gupta (Expert)
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11 February 2010 Yes. 8 Assessment years with first assessment years as 2011-12 to 2018-2019.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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11 February 2010 Agree, you can carry-forward loss from business up-to 8 years.

Rajnish

Rajnish (Querist)
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12 February 2010 Really thanks to all of you.

Please co-operate to me in future.

Regards
Rajnish

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