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snia joseph (Querist)

14 May 2013 business profit is there.brought foward business loss set off against it.current year business loss set off with house property loss.is this a right treatment

Gayathri Devi

Gayathri Devi (Expert)

14 May 2013 Dear Snia

It is correct only you can set off u/s 71 & 72 of the Income Tax Act,1961

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snia joseph

snia joseph (Querist)

15 May 2013 thank u mam.but in ipcc taxation solution may 2013 ,one faculty had answered in another way.ie,current business loss is set off with current year profit and carry forward the brought forward loss.inthat question there was house propery income.

Gayathri Devi

Gayathri Devi (Expert)

15 May 2013 It can be made but the brought forward loss can be adjusted only against the particular head of income.

The current year loss can be adjusted under other heads of income except salaries.

snia joseph

snia joseph (Querist)

16 May 2013 thats not my doubt.order for set off.ie,brought forward bsiness loss can setoff only after setting off curent year business loss against current year business profit?

is this a rigid order?
current business loss
brought forward business loss

snia joseph

snia joseph (Querist)

19 May 2013 reply me soon............

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

09 October 2021 Yes, first all the loss or gains of current year are adjusted, only after that bought forward losses of preceding years are set off, against any income of corresponding head.

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