Set off and brought forward losses

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Kapil Ramesh Khivansara (Querist)
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02 August 2013 Suppose we have a profit of Rs. 7.00 Lacs in Current year and brought forward losses of Rs. 11.00 Lacs so while taking setoff of brought forward losses in current year Deduction under Chapter VIA upto Rs. 1.00 Lac and Basic exemption Limit of Rs. 2.00 Lacs should be considered thus reducing the brought forward loss only by Rs. 4.00 Lacs and balance to be carried forward Rs. 7.00 Lacs

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 August 2013 Find out GTI then apply the provisions of set off and carry forward and den apply chapter VI-A deductions.

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Paras Chheda

Paras Chheda (Expert)
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02 August 2013 Kapil you have to set off Rs. 7,00,000/- of loss with current years profit. You can't take benefit of Deduction first & then use set off & carry forward.

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Kapil Ramesh Khivansara

Kapil Ramesh Khivansara (Querist)
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02 August 2013 but can we take the benefit of basic exemption limit of Rs. 2.00 lacs and take less setoff accordingly

Paras Chheda

Paras Chheda (Expert)
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02 August 2013 No you cannot take benefit of Basic exemption limit also if your carried forward loss is more than your current year's profit (as in ur case)

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Kapil Ramesh Khivansara

Kapil Ramesh Khivansara (Querist)
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02 August 2013 Ok Thanx alot Paras and Tushar

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