is it mendatory to set off losses in the year when there is income ?
still it can be c/f to next year when we have income but don't want to setoff.
also can loss be setoff proportionately that is upto 8 a/y's thoda thoda kar liya each year instead of whole in 1 year .
kindly reply me as soon as possible
you can not claim in style thoda thoda kar liy, you must claim 100%
Divya,
When you have B/F losses no prudent businessman would think of not setting it off entirely against subsequent years income; and paying tax on such income where you could avoid paying it. He could use the same (tax) funds in his business and generate income. Try applying Present value of money concept.
In my opinion, practically speaking, if you opt for your so called concept of "thoda thoda kar liya each year instead of whole in 1 year" your assessing income tax officer would definitely be a happy person and won't mind it since his tax collections are affected favourably.
I am also agree with everybody.
loss should be set off before its carry forward............ (if there is income)...........
Agree with above friends........
Loss should be adjusted against the Income before it is carried forward....
is it mendatory to set off losses in the year when there is income ?
Yes it is mandatory
still it can be c/f to next year when we have income but don't want to setoff.
In case there is income there has to be a set off. In case set off is not done then the amount which is not set off from the income cannot be set off in future. However any amount above the income that could otherwise also have not been set off because the income was not so much to set off may be set off in the coming 8 yrs
also can loss be setoff proportionately that is upto 8 a/y's thoda thoda kar liya each year instead of whole in 1 year .
no thats is also not possible
yes it is mandatory to set off losses and accumulated depreciation in the year you have profit... it is better to set off at earliest coz current year losses can be set off against any income(subject to certain conditions).. however when you carry forward them, you can set off dat particular loss against that particular income only.... so even if it wouldnt have been mandatory it is better to set off at earliest forseeing time limiits....
Dear Friends,
can anyone tell me, in which section it has been specifically mentioned that loss should be set off in the year where there is income???
CAclubindia
