Setting off business loss against income which is below basic exemption

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22 Points Posted on 03 March 2020

Hi,

Can anyone help me with understanding my below query:

if my business income is 4 lakhs

unabsorbed depreciation 2lakh

c/f business loss 1lakh

should I set off both depreciation and business loss? or set off business loss 1 lakh and unabsorbed depn only to the extent of 50,000, to allow assessee to claim basic exemption of 2,50,000?

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On 03 March 2020 at 13:13 Report
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Quick Summary
This discussion clarifies how to set off business losses and unabsorbed depreciation against your income. When your business income exceeds the basic exemption limit, you must set off both the business loss and unabsorbed depreciation in full. This calculation results in a lower taxable income for the year, which in this case is £100,000.

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21 Points Posted on 03 March 2020
Set off both
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On 03 March 2020 at 13:38
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17269 Points Posted on 03 March 2020
You can't claim according to basic limit of 250000/-.

Here since income is there that is 4 lakhs , you have to mandatorily claim both 2+1 lakhs and the result will be your taxable total income of the year will be 1 lakh only.
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On 03 March 2020 at 16:38

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