Sett of Losses

Such loss is eligible to get set off against any other income of that current year only....

And as far as my knowledge is concerned, u can carry forward such business loss upto 8 years... (Logic being, when our debts of expired business are acquire in any following year, then such is considered as income in that following year.... similarily, such business loss should be eligible to carry forward ar normal terms)

Dear Sorabh,

As far as I know "LOSSES of Discontinued Business can be setoff as well as carried forward to next year "

But remember the word is LOSSES & not the "EXPENSES", therefore Expenses of Discontinued Business cannot be claimed.

Dhiraj

Thanks for your reply......but as far as my concerned i have some doubts...........as if business is dicontinued in previous year then loss of such P.Y can not be sett of f in such year ......please share u opinion......

Dear Sorabh,

Continuty of business is not a condition to set off losses or to carry forward it..

Dear Aamir

Please read the law carefully then suggest ur opinion..........I m just not commenting you & but i just want to know the answer my query...........

Hi sorabh... the point is, though ur business has discontinued, but the loss from the same can be set off against other incomes in the same year as u have conducted the business and such loss has occured (its not a notional loss after discontinuance of the business)....

Moreover, such loss also can be carried forward like any other business loss, no problem in that

Yeah Dhiraj

Your opinion is absolutely right & i agee with the same.............but i refer the law book in which it has be given that loss fo such previous will not allowed to be stt of from the incoem of such previous year & only allowed to sett off only against the income earned u/s 41 (1) , (4)  i.e. recovery of bad debts..........

Please give opinion..........

Wait on.. let me just check out and confirm....

Coz, as far as my knowledge is concerned, there's no such provisions.. but let me jst verify

Hi... i just verified with some reference book, it clearly specifies that from A.Y 2000-01.., loss of any such business, which has been discontinued, can be carried forward... (sec 72)

But it nowhere mentions anything about setting off it in that previous year only.., but thats to be understood that such loss can be set off in the year of closing down of business as well as future years...

Ok Dhiraj

I wll check again......................May be i m on wrong side.................

Nice to talk to you dear.............& Best of luck for your career...........Hope we will get in touch in future...................

Definately....

And i still feel that u have read correct, may be there it may be some other perspective or some other matter....

Thanx for posting such query