Set off & Carry Forward of Losses -- doubt

790 views 3 replies

Hello Everyone,

 

This is regarding upcoming IPCC May Exam - Taxation.

 

When a question is asked to compute Taxable Income or Tax Liability of an individual -- giving all the details of Income from Salary, HP, CG, Business, & IFOS -- do we need to adjust the incomes as per Set off & Carry forward rules and then take the final figures under each head to compute the Taxable Income..?  

 

Or should we do the Set off and Carry Forward only when the specific question is asked..?

 

Awaiting your thoughts on this... Thank you in advance for your help.

 

Best Regards,

-- Deepa.

Replies (3)

 

If in the question set off and carry forward is requried... then you have to adjust the same before calculating the Gross total income. For eg: if there is profit from HOUSE 1 Rs.72000 and loss from House2 (Rs.30000), then Net income from House property will be (72000-30000)=Rs.42000. You will have to do this adjustment even if separately it is not asked for set off and carry forward.

Originally posted by : vinnzz

 


If in the question set off and carry forward is requried... then you have to adjust the same before calculating the Gross total income. For eg: if there is profit from HOUSE 1 Rs.72000 and loss from House2 (Rs.30000), then Net income from House property will be (72000-30000)=Rs.42000. You will have to do this adjustment even if separately it is not asked for set off and carry forward.
 

Thank you for your replies...

 

This was in case of Intra Head (Same source) Adjustments...

What about Inter Head Set off..?

 

If Salary Income is say Rs.1,20,000 and HP Loss after Intra Head adjustment is Rs.70,000 -- how should the answer be presented?  

Income under the head Salary           1,20,000

Income under the head HP                  (70,000) 

                                 OR

Income under the head Salary                 50,000    

after setoff HP Loss

 

Thanks again for your replies.

 

-- Deepa.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details