I had this query for the purpose of Tax Planning.
Assume I am an Indivisual with no other income.
Supposing i am having a b/f business loss of Rs.300000 from AY 10-11
Now I am having business income of Rs.320000 in AY 11-12.
Can I setoff only Rs.160000 from the B/f Loss so that my income for AY 11-12 stands at Rs.160000 (320000-160000) (min. exemption limit) and let the remaining Rs.140000 (300000-160000) be carried forward to future AYs. (since there is no further benefit in setting off ie. from tax angle)
Is this kind of adjustment allowed? If yes, then is it recommended?