Tax Loss Carried Forward in India

Dear Friends,
What is meant by Tax Loss Carried Forward ? It is applicable to India?
Replies (6)
Quick Summary
This discussion explains the concept of Tax Loss Carried Forward (TLCF) in India. It clarifies that unadjusted losses, after intra-head and inter-head adjustments, can be carried forward to future tax years. To be eligible, a return of loss must be filed by the due date, and the losses must be calculated as per the Income Tax Act, not just book accounts. The example provided illustrates how net losses from previous financial years can be aggregated for future adjustment.

As per income tax act, After making the appropriate and permissible intra-head and inter-head adjustments in income of taxable person in computation of total income, there could still be unadjusted losses. These unadjusted losses can be carried forward to future years for adjustments against income of that years. The rules as regards carry forward differ slightly for different heads of income.
Dear Sagar Ji, GM. Our company's is running losses for the past two years. So, the same Net losses values are equal to Tax Loss Carried forward?

eg. FY 18-19 Net Loss 75 Lakhs
FY 19-20 Net Loss 50 Lakhs
Total 125 Lakhs. These losses are Tax Losses carried fwd?.....
A return of loss is required to be furnished for determining the carry forward of such losses, by the due date prescribed for different assessees u/s. 139(1) of the income tax Act.

There is provision regarding calculation of Business profit/loss under head Profit and Gain from business and profession as per Income tax act (not as per books of accounts)
If you have a business loss (as per IT act), and you furnished the return of loss within a due date of furnishing return, claimed the losses in that year than only loss can be carried forward to next year.
Thank you so much Sagar Sagar Sir
You are most welcome, sir.......
GM Sagar Sagar Bhai. If possible could you please share me the working Templates in excel with formulas. mohanraj_vkj @ yahoo.co.in

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