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Presumptive Taxtion

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shivani

student

79 Points Posted on 26 September 2023

can we set off last year business loss in case of presumptive taxation u/s 44ADA?

Replies (3)

Quick Summary

This discussion explores whether it's possible to offset a previous year's business loss when utilising presumptive taxation under Section 44ADA. While the general rule might suggest otherwise, the possibility of intra-head adjustment for set-off is considered. Readers are advised to consult the IT website and income tax calculators for definitive confirmation.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 26 September 2023

No...

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 27 September 2023

Set Off may be done since intra head adjustment is allowed in set off.

Check the IT website, Income Tax calculator and validate it to confirm

Aashok Kumar Sharma

Finance/Compliance Consultant

77850 Points Posted on 08 November 2026

B/f loss and 44ADA:
• Brought-forward business losses can be set off against income declared under 44ADA (presumptive income is "profits and gains of business or profession", and Sec 72 allows set-off against business income). The 44ADA provisions deem allowances under Sec 30–38 as allowed, but don't bar Sec 72 set-off.
• However, unabsorbed depreciation is deemed allowed, so the WDV is reduced. Brought-forward losses remain set off-able.
• CBDT FAQs and many practitioners accept b/f loss set-off against presumptive income. Some AOs dispute it. Generally allowed.