Amount of loss that can be carried forward

Add up all numbers and subtract capital gain and other income. It gives 287000₹ and this will be carried forward to be adjusted future profits.

The answer is probably Nil or C due to this logic: you know losses are exempt for individuals. Companies do not pay capital gains taxes, but they are included in the taxable profits. Similarly, losses as well. This answer ‘C’ is representing total taxable profits. 

However, I don’t know the filing procedure and what happens once IT returns are filed. My assumptions are, you have filed for losses which includes capital gains and losses. If you remember, trading income (PBT) with adjustments to allowances gives total taxable income.

For this problem, there is no requirement to set off with future profits or add past losses to current year. There is no data. It is the IT law that capital gains taxes are paid by individuals and not companies. When a company holds trading instruments like bonds, shares of other companies (investment), when it sells them, in both cases of profit and loss, it is recognised in profit or loss statement. This loss is deducted from revenues and becomes Book profit or trading profit.

Revenue 10,000

Expenses 9,000

Capital Loss 2,000

Capital gain 500

PBT= -500₹

And this amount as whole will be filed as a loss and will be carried forward. This will be set off with next year’s profits if any until the whole 500 is recovered. 

In the above problem, this was not asked in the question.

One cannot setoff. It is an accounting law to treat everything separately.

Search ‘Offsetting not permitted in Indas’ in google. 

Financial assets and financial liabilities are off set and the net amount is presented when and only when, the Company has legally enforceable right to set off the amount it intense, either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Read more at: https://www.goodreturns.in/company/prime-focus/accounting-policy.H T M L

This is applicable not only for financial assets and liabilities, but can be enforced to all the five elements like assets, liabilities, income, expenses and equity when there is no guideline mentioned. So you cannot setoff or use net amounts due to the underlying principles of IndAS 1.

In simple words, you have to calculate all items separately.

You cannot use netted amounts in presentation.

You need permission to setoff.

For this problem, you cannot setoff depreciation with income.