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