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interpretation of Sec. 73

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This query is : Resolved

Shyam Murarka (Querist)

26 September 2008 As per sec. 73 amendment..w.e.f. A.Y. 05-06, the permissible years of carry forward of losses are 4..(before that it was eight).. so what will be the consequence for the loss which are already been carry forwarded as on A.Y. 05-06..
Suppose loss incurred in A.Y. 2003-04 will be carry forward till 8 yrs. or 4 yrs.?

Vivek Goel

Vivek Goel (Expert)

26 September 2008 such amendment was made by finance act 2005 which came into effect from 1-4-2006. As per sec74(4) No loss shall be carried forward under this section for more than four assessment years immediately succeeding the assessment year for which the loss was first computed. law makers had not insertet such amendment with retrospective effect. loss inccured only after such amendmend shall be c/f for 4yr. thus,loss incurred in A.Y. 2003-04 will be carry forward for 8 yrs

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