Set Off and carry forward

21 September 2019
Hi Good Morning Everyone. I have a doubt in Income Tax Set off and Carry forward.

Question 1:

For Example: (Non-speculative)
Business Gain in FY 2018-19 = Rs. 1000
Deductions eligible u/s 80G in FY 2018-19 = Rs. 700
Loss Carried forward from FY 2017-18 = Rs.2000.

Can I set off Loss of FY 2017-18 to the extent of only Rs. 300 and take Rs. 700 to Gross Total Income and then set off deduction u/s 80G, Rs. 700 to make Net Total Income to zero?

Question 2:

Loss on Short Term Capital Gains in FY 2018-19 = Rs. 1000
Gain on Business in FY 2018-19 = Rs. 1500
B/f Unabsorbed Depreciation from FY 2017-18= Rs. 2000

Can I set off Unabsorbed Depreciation for Rs. 1500; Pay full tax on Short Term Capital gain @ 15% on Rs. 1000 and carry forward Unabsorbed depreciation of Rs.500 to next year to set off Business gain which is normally taxable at 30%

Is there any case laws supporting these questions?
Experts Please help?

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