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Carry Forward and Set- off

Deeps (Article Assisstant) (2485 Points)

27 April 2010

If an assessee incurred Business Loss during Previous Year 2001-02, can he set off such loss using current year Business Income. (AY 10-11)

According to the Act, business loss can be carried forward and set off with in 8 Assessment Years.

Hence the assessee cannot set off this loss. Am i correct?

Pl. Reply. Thanks in advance :)

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19 Replies

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 27 April 2010

Hi Deepika,

As per my knowledge, in ur case assessee can set off his business loss for the Previous Year 2001-02 in AY-2010-11.

Deeps (Article Assisstant) (2485 Points)
Replied 27 April 2010

Loss should be set off within 8 Assessment Years. In this case starting from AY 2002-03 to 2009-10 it completes. Am i correct?

rakesh khandelwal (JOB) (258 Points)
Replied 27 April 2010

its 8 year from the end of the relevant AY in which th loss occured...

so loss of PY 01-02.... can be carried forward and set off..... till... AY 10-11

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 27 April 2010

assesee can set off his loss in a/y 2010-2011.period of set off starts from a/y 2003-04

Nitin Grover (CS) (1228 Points)
Replied 27 April 2010

Dear Deepika

That Business man can set off his loss upto A.Y 2010-11

1. A.Y is 2003-04 because you are incurring loss in the Prev. Year 2001- 02 means to say that A.Y 2002-03 and loss can be carry forward for next Eight years

so A.Y 2010-11 is the Eighth year and its last year and one more thind if Company amalgmated with any company in the A.Y 2010-11 then eight year for carry forwarding Losses will be start again....

Regards

1 Like

CA Sanjay Jha (ACCOUNTS MANAGER) (914 Points)
Replied 27 April 2010

More and more person giving many answer but all of these answers are only one concept that is business loss carried forward up 8 assessement year.

Now calculation

Relevent case P. Y. 2001-02

Assessement Year 2002-03

Now 8 Assessment Year 1. 2003-04

2 2004-05

3 2005-06

4 2006-07

5 2007-08

6 2008-09

7 2009-10

8 2010-11

YES SET OFF Possible

1 Like

CA Mohit kumar jain (Searching Source of Money) (149 Points)
Replied 27 April 2010

u making calculation mistake correctly calculate assessee set off it

Nitin Grover (CS) (1228 Points)
Replied 27 April 2010

Dear Sanjay Sir

Nice Explantion but sir you should not pinched any body else and for your kind information if u see a prior message then you i have cleary written its your last year for set off and Deepika is not a KID she can also calculate

so thanks for your such a nice and simple mathood but pls pls dont pinched other friends

thanks for participation and pls do more

we all need you help

Thanks and Regards

CA Sanjay Jha (ACCOUNTS MANAGER) (914 Points)
Replied 27 April 2010

Originally posted by : Nitin Grover
	Dear Sanjay Sir Nice Explantion but sir you should not pinched any body else and for your kind information if u see a prior message then you i have cleary written its your last year for set off and Deepika is not a KID she can also calculate so thanks for your such a nice and simple mathood but pls pls dont pinched other friends thanks for participation and pls do more we all need you help Thanks and Regards

Sorry NITIN G

If u Think that I have pinching u.

But my intention is not so type.

I think No any one member's in CACLUBINDIA have to intention to pinch other members.

All the member are only one intention share own IDEA.

So I again sorry.

Thanks

1 Like

Nitin Grover (CS) (1228 Points)
Replied 27 April 2010

Dear Sir

Pls dont say Sorry

you are so much respected person for me pls sir

thanks

Deeps (Article Assisstant) (2485 Points)
Replied 27 April 2010

Thanks everybody :)

In Singhania Book it is given as "Business Loss pertaining to the assessment year 1988-99 can be adjusted upto Assessment Year 1996-97". So only, i calculated and said 8 Assessment Year is completed.

Pl. clarify

CA Sanjay Jha (ACCOUNTS MANAGER) (914 Points)
Replied 27 April 2010

Dear Deepaka

A. Y. 1988-89 loss carried forward upto 8 assessement year i. e.

90-91

91-92

92-93

93-94

94-95

95-96

96-97

97-98

But if singhania book written upto 1996-97 then may be possible Printing Mistake

1 Like

Nitin Grover (CS) (1228 Points)
Replied 27 April 2010

Dear Deepika yes u r right pls refer exlanation of mr. sanjay its good Dear u r saying loss incurred in A.Y 1988-89 (P.Y 1987-88) and as per rules Eight years starts from the next previous year means to say that A.Y 1989-90 (P.Y 1988-89) so calculate eight years from their

1. 1989-90

2. 90-91

3. 91-92

4. 92-93

5. 93-94

6. 94-95

7. 1995-96

8. 1996-97

Regards

Nitin Grover (CS) (1228 Points)
Replied 27 April 2010

Dear Sanjay sir

pls correct me if i am wrong

every lear for counting of Loss begins from the next year in which loss has incurred so in this case loss incurred in 1988-89 so period must be begin from 1989-90

1 Like