Partial set-off of a loss

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karan (Querist)
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26 November 2011 Following is the Income Details of an Assessee :

Income From Other Sources - 7,00,000
Business Loss - 3,00,000

Now , he wants to set off only2,00,000 Business Loss from "Income From Other Sources" and carry forward1,00,000 Business Loss to Future years . Can he do this ?

In short ,
(i) is it the choice of the Assessee how much of a Loss he wants to set off against Income for a particular year ?

(ii) or does he compulsorily have to set-off as much of the Loss as is possible in the year in which the Loss occurred ?

(iii) or is the rule something different altogether from the above two points ?

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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26 November 2011 The Set off provisions are mentioned in Section 72 of the Income Tax Act, 1961. In these provisions full set off is provided and partial set off is not mentioned. Then you have to set off full amount of Business Loss from the Income from other sources. The loss of Rs. 300000/- from Business or Profession will be set off against Income from other sources during the Assesement Year under consideration.