22 March 2008
My client has carried forward losses from his business of Rs.450000/- This year he has earned a profit of Rs.150000/-He is a resident male not a senior citizen. How much loss can be set off against his income of Rs.150000/- this year?Whether Rs.40000/- to make his tax NIL?Or Rs.150000/-? What is the position in the Act?
24 March 2008
Mr Pushkraj, the Income Tax does not state that only that amount of loss should be setoff which makes the total income below or par to the taxable incoem. The b/f loss should be setoff agst the total income. In ur case, the whole of rs.150000/- will be adjusted agst loss.
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