Set off and Carry forward

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Vedant Khanna

228 Points Posted on 29 April 2019

Sir,
Is it necessary to set off current year business losses before setting off brought forward business loss?
(both being non-speculative)

Eg.
Income from HP = 60,000

Income from business A= 1,00,000

Current year loss in business B= 50,000

B/f loss in business A= 70,000
B/f loss in business B= 80,000

Please tell me what will be the minimum possible GTI in such a case.

Can we first set off b/f losses of 1,50,000 with PGBP income of 1,00,000
(50,000 being c/f further)

Then set off current year business loss with HP Income.

Or is it necessary that i must first set off current year loss from pgbp income only?

Replies (4)

Giridhar S Karandikar

Team Lead

5675 Points Posted on 29 April 2019

the order for set off of losses is prescribed under the act.
first current year losses to be set off. after that b/f losses then unabsorbed depreciation

Vedant Khanna

228 Points Posted on 29 April 2019

Sir can u plz mention the section.
The order which i have seen says about current year depreciation being set off first before b/f business loss.

My question is regarding current year business loss being set off against business income of another business.

If possible plz answer the example above.

Giridhar S Karandikar

Team Lead

5675 Points Posted on 29 April 2019

yes current year business loss needs to be set off first and after that if any profit remains then b/f business loss can be set off. refer section 72 for more information