Set Off of Losses

Set-off & carry-forward of losses under Income-Tax Act, 1961

Income Tax - The Income-Tax Act, 1961, allows set-off and carry-forward of the loss incurred by any assessee subject to some restrictions Apart from other information, the new income-tax forms, ITR-1 to ITR-8, notified by the Central government seeks details on set-off of losses. Now almost every assessee has to give this information. Therefore, one h...

Read More

Can loss be carried forward & set-off if ROI filed after due date?

Income Tax - Section 139(3): According to this section if a person has sustained a loss under the head ‘Profit and Gains of Business or profession’ or under the head ‘Capital Gains‘ and claims that such loss should be carried forward under section 72, section 73 or section 73A or section 74 or section 74A, then he may furnis...

Read More

Set off or carry Forward & Set off of Losses (Chapter VI – Section 70-80 of Income Tax Act, 1961)

Income Tax - Introduction: ♦ As per Section 2 of the Income Tax Act, 1961 definition of Income includes losses also. ♦ Losses in the Income Tax Act, 1961 are dealt in accordance with Chapter VI of the Act which consist of Section 70 to Section 80. ♦ Assessee paid tax on Total Income. It might be possible […]...

Read More

Order of setting off of losses & deductions against Business /profession Income

Income Tax - A business in its normal course of business can incur losses on account of various reasons. One of the reason being heavy deductions and exemptions given by the government under the Income Tax Act,1961 in order to encourage the expansion of existing business or set up new business....

Read More

Set off of long term capital loss against STCG on depreciable assets sale

Income Tax - The long term capital loss (LTCL) can be set off against the short term capital gain (STCG) arise on depreciable assets u/s 50 of income tax act, 1961 As per provisions of section 74(1)(b) loss related to a long term capital gain can be set off against the long term capital gain. Long Term Capital […]...

Read More

Effectively utilize losses to reduce the tax burden

Income Tax - Income tax is a tax on income earned by a taxpayer in a given year. However, activity of a taxpayer may not always result in income. Certain activities may cause losses too. It would be unfair to tax a person on his income, while ignoring the loss. In recognition of this principle, there are elaborate […]...

Read More

Section 54F exemption allowable before Intra Head Adjustment of Losses

Shri Naresh Jain Vs ACIT (ITAT Jaipur) - whether it is lawful to first compute capital gain after doing intra head adjustments and whether the deductions u/s 54F should be allowed from the net income computed after intra head adjustments?...

Read More

Form 62 filing Not Mandatory to allow carry forward of Losses u/s 72A

PCIT Vs M/s. Lotte India Corporation Ltd (Madras High Court) - whether the non-filing of prescribed Form No.62 for the third Assessment Year is restrict the Assessee to carry forward losses under Section 72A of the Income TaxAct, 1961?...

Read More

STT paid Long Term Capital Loss Can be Set Off against Non-STT paid Long Term Capital Gains

Rare Investments Vs CIT (ITAT Mumbai) - The issue under consideration is whether the long-term capital gain on sale of non-STT paid shares can be set off against long-term capital loss arising from STT paid shares? ...

Read More

Set off of Brought Forward Losses of Merged Division in Revised Return allowed by ITAT

ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court) - ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court) The issue under consideration is whether the set off of brought forward losses and unabsorbed depreciation of merged division in revised return is justified in law?  In present case, the assessee Company had filed the original return...

Read More

Set off of unabsorbed depreciation allowed irrespective of continuity of business in next year

DCIT Vs Regency Property Investment Pvt. Ltd. (ITAT Mumbai) - The issue under consideration is whether set off of the ‘unabsorbed depreciation’ can be allowed irrespective of continuity of the business in next year?...

Read More
Sorry No Post Found

Set Off of Losses’s Popular Posts

Recent Posts in "Set Off of Losses"

Set-off & carry-forward of losses under Income-Tax Act, 1961

The Income-Tax Act, 1961, allows set-off and carry-forward of the loss incurred by any assessee subject to some restrictions Apart from other information, the new income-tax forms, ITR-1 to ITR-8, notified by the Central government seeks details on set-off of losses. Now almost every assessee has to give this information. Therefore, one h...

Read More
Posted Under: Income Tax |

Can loss be carried forward & set-off if ROI filed after due date?

Section 139(3): According to this section if a person has sustained a loss under the head ‘Profit and Gains of Business or profession’ or under the head ‘Capital Gains‘ and claims that such loss should be carried forward under section 72, section 73 or section 73A or section 74 or section 74A, then he may furnis...

Read More
Posted Under: Income Tax |

Set off or carry Forward & Set off of Losses (Chapter VI – Section 70-80 of Income Tax Act, 1961)

Introduction: ♦ As per Section 2 of the Income Tax Act, 1961 definition of Income includes losses also. ♦ Losses in the Income Tax Act, 1961 are dealt in accordance with Chapter VI of the Act which consist of Section 70 to Section 80. ♦ Assessee paid tax on Total Income. It might be possible […]...

Read More
Posted Under: Income Tax |

Section 54F exemption allowable before Intra Head Adjustment of Losses

Shri Naresh Jain Vs ACIT (ITAT Jaipur)

whether it is lawful to first compute capital gain after doing intra head adjustments and whether the deductions u/s 54F should be allowed from the net income computed after intra head adjustments?...

Read More

Form 62 filing Not Mandatory to allow carry forward of Losses u/s 72A

PCIT Vs M/s. Lotte India Corporation Ltd (Madras High Court)

whether the non-filing of prescribed Form No.62 for the third Assessment Year is restrict the Assessee to carry forward losses under Section 72A of the Income TaxAct, 1961?...

Read More

Order of setting off of losses & deductions against Business /profession Income

A business in its normal course of business can incur losses on account of various reasons. One of the reason being heavy deductions and exemptions given by the government under the Income Tax Act,1961 in order to encourage the expansion of existing business or set up new business....

Read More
Posted Under: Income Tax |

Set off of long term capital loss against STCG on depreciable assets sale

The long term capital loss (LTCL) can be set off against the short term capital gain (STCG) arise on depreciable assets u/s 50 of income tax act, 1961 As per provisions of section 74(1)(b) loss related to a long term capital gain can be set off against the long term capital gain. Long Term Capital […]...

Read More
Posted Under: Income Tax |

STT paid Long Term Capital Loss Can be Set Off against Non-STT paid Long Term Capital Gains

Rare Investments Vs CIT (ITAT Mumbai)

The issue under consideration is whether the long-term capital gain on sale of non-STT paid shares can be set off against long-term capital loss arising from STT paid shares? ...

Read More

Set off or Carry forward and Set off of Losses

Income tax department known for collection of heavy taxes on income being earned by the assessees also provide them relief at the time they incur losses. In the eyes of assessee IT Department has always been harsh when it comes to collection of taxes but there is opposite side also i.e. Department allow the assessee to Set off or Carry Fo...

Read More
Posted Under: Income Tax |

Set off of Brought Forward Losses of Merged Division in Revised Return allowed by ITAT

ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court)

ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court) The issue under consideration is whether the set off of brought forward losses and unabsorbed depreciation of merged division in revised return is justified in law?  In present case, the assessee Company had filed the original return of income on 28.09.2010 showing total i...

Read More

Set-Off & carry forward of losses – A Complete Summary

This article covers the provisions of The Income Tax Act, 1961 and rules made there under in regard to the Carry Forward and Set Off of Losses. The Income Tax Act has prescribed rules to set-off loss arising from one head against other heads of income. The process of setting off of losses and their […]...

Read More
Posted Under: Income Tax |

Set off and carry forward of losses of Specified Business | Section 73A

Specified Business under section 35AD of the Income Tax Act: Section 35AD of the Income Tax Act provides for an investment-linked incentive to the assessee carrying on the specified business. Section 35AD provides deduction to the extent of 100% to assessee carrying on “Specified Business” as specified under the act.  Set off and car...

Read More
Posted Under: Income Tax |

Carry Forward and Set Off of Losses with FAQs

Article covers Income Tax Act provisions related to Carry Forward and Set Off of Losses with Frequently asked Question and Answers.Loss from exempted source of income cannot be adjusted against taxable income...

Read More
Posted Under: Income Tax |

Set-off & carry forward of Loss from owning & maintaining racehorses

Provision applicable for the set-off and carry forward of losses from the activity of owning and maintaining race horses (Section 74A of the Income Tax Act) Where the losses could not be set off under the same head or different heads of the income in the same assessment year, then such amount of losses are […]...

Read More
Posted Under: Income Tax |

Set off and Carry Forward of Capital Loss

A capital asset has been defined under section 2(14) of the Income Tax Act. Any gain arising from the transfer of the capital asset is termed as capital gain it can be short term or long term. And when there is a loss on the transfer of a capital asset, the loss termed as a […]...

Read More
Posted Under: Income Tax |

Set off of unabsorbed depreciation allowed irrespective of continuity of business in next year

DCIT Vs Regency Property Investment Pvt. Ltd. (ITAT Mumbai)

The issue under consideration is whether set off of the ‘unabsorbed depreciation’ can be allowed irrespective of continuity of the business in next year?...

Read More

Carry forward & set off of Business Losses other than Speculation Loss

Having profit and loss in the business are two sides of a coin. Of course, losses are hard to digest. However, the Income Tax law in India does provide taxpayers with some sort of benefits of incurring losses too. Under the Income-tax Act, the Income is taxable under the five different heads: -Income from salaries […]...

Read More
Posted Under: Income Tax |

Set Off & Carry Forward of Loss under the head House Property

What is set-off of losses means? Set-off of losses means adjustment of losses against the income of that relevant year. Where the losses are not completely set off against income of the same financial year then such losses can be carried forward to the subsequent year or years for set off against income of those […]...

Read More
Posted Under: Income Tax |

Carry forward & set off of business losses subsequent to change in shareholding

Section 79 has no application in the absence of change in the beneficial voting power. Even after transfer of shares in the assessee company by its ultimate holding company to its another subsidiary, beneficial ownership of the assessee company continued to vest with the same holding company and therefore provisions of section 79 would no...

Read More
Posted Under: Income Tax |

Guide to Set Off & Carry Forward of Losses under each head of Income

This article focuses on provisions of The Income Tax Act, 1961 and rules made there under relating to Set Off and Carry Forward of Losses. This is a complete guide to set off and carry forward the losses including the set off of losses from business and profession from presumptive income. A. There are two […]...

Read More
Posted Under: Income Tax |

Set off of Loss against Income from Other Sources is prohibited wef 01.04.2017

Sri. John Daniel Vs ACIT (ITAT Cochin)

The assessee contended that the Assessing Officer has rightly allowed set off of income from other sources against other heads of income because up to assessment year 2016-2017 there was no prohibition on set off of losses. It was contended that the amendment to section 115BBE of the I.T.Act restricting the set off of any loss was inserte...

Read More

Turnover Computation & Tax audit applicability for F&O Transactions

Ideally when you deal in Futures and Options, the transaction size is big but profits are too small. Therefore confusion prevails that whether these transactions can be termed speculative transaction or they are business losses or profits....

Read More
Posted Under: Income Tax | ,

ITR can be filed in paper form if e-filing not allowing set off of losses

Samir Narain Bhojwani Vs DCIT (Bombay High Court)

Since the prescribed electronic return of income did not permit assessee to make his claim to set off of his profits of this year from the carried forward losses of the previous year, therefore, assessee was directed to make a representation on the above issue to the CBDT and in the meantime, assessee without prejudice to his rights and c...

Read More

Set off and carry forward of Capital Gain under Income Tax

Amidst the current economic turmoil going on globally on account of the disruption in the supply chain and economic stillness for a period, there are certain inconspicuous benefits in terms of capital gains tax under the income tax provisions which if planned well may benefit to an extent depending on the income profile and the tax bracke...

Read More
Posted Under: Income Tax |

Carry forward & set off of losses when changes in shareholding takes place

The existing provisions of section 79 of the Act, inter-alia provides that where a change in shareholding has taken place in a previous year in the case of a company, not being a company in which the public are substantially interested,...

Read More
Posted Under: Income Tax |

Pre Budget Recommendations of Income Tax for Union Budget, 2020

As we all are aware that The Union Budget for 2020-21 will be presented in the Lok Sabha on 1st February, 2020) at 11.00 am by our Finance Minister Nirmala Sitharman. As per every year, this year also Institute of Chartered Accountants of India has submitted its Pre Budget Memorandum to the government. Today we […]...

Read More
Posted Under: Income Tax | ,

Carry Forward and Set off of Losses in tabular form with FAQs

Set off of loss from one source against income from another source under the same head of income/inter- source set-off under the same head of income Any loss in respect of one source shall be set-off against income from other source under the same head of income. But, there are some exception to this....

Read More

Analysis of Section 79-Carry forward & set off of losses in companies

Analysis of Section 79 of Companies Act, 1961 -Carry forward and set off of losses in companies Section 79 of the Income Tax Act, 1961 deals with the carry forward of losses for certain class of companies which satisfy the conditions specified in Sec.79 Below is the analysis on carry forward of losses in case […]...

Read More
Posted Under: Income Tax |

Income Tax on F&O Trading

Future and Options (F&O) Trading is a popular activity amongst taxpayers due to availability of  multiple online trading platforms. The Income Tax provisions on F&O trading need to be analysed carefully. Meaning of F&O Trading F&O Trading comprises of trading in futures and options. They are classified under Derivatives. ...

Read More
Posted Under: Income Tax |

Set Off and Carry forward of Losses

Provisions pertaining to Set-Off and carry forward of losses are divided in 3 parts: Part 1 deals with Set off of loss from one source against income from another source under the same head of income.(Section 70) Part 2 deals with Set off of loss from one head against income from another head (Section 71) […]...

Read More
Posted Under: Income Tax |

Set off of business losses against capital gains is not mandatory

Sh. Ajay Kumar Singhania Vs DCIT (ITAT Chandigarh)

Sh. Ajay Kumar Singhania Vs DCIT (ITAT Chandigarh) The sole issue involved in this appeal is as to whether under the provisions of section 71 of the Income-tax Act, 1961 (in short ‘the Act’) there is an option to the assessee to set off the business losses against the capital gains or is it mandatory to […]...

Read More

Set-Off & amp; Carry Forward – A Complete Summary

Do you have Losses?? Have you also faced the losses in past years as well?? It’s sad to know that you have to confront the losses.! But do you know that there are some uses of these losses too? And these losses can somehow be used to make you benefited. Enough of Quizzes.! Right?? But […]...

Read More
Posted Under: Income Tax |

Remove proposed Restriction on set-off of loss from House property: ICAI

The Finance Bill 2017 proposes to insert sub-section (3A) in section 71 to provide that set-off of loss under the head Income from house property against any other head of income shall be restricted to two lakh rupees for any assessment year....

Read More
Posted Under: Income Tax | ,

Budget restricts set-off of loss from House property to Rs. 2 Lakh

It is proposed to insert sub-section (3A) in section 71 to provide that set-off of loss under the head Income from house property"against any other head of income shall be restricted to two lakh rupees for any assessment year....

Read More
Posted Under: Income Tax | ,

Set Off of Losses or Carry Forward and Set Off of Losses

SET OFF OF LOSS FROM ONE SOURCE AGAINST INCOME FROM ANOTHER SOURCE UNDER THE SAME HEAD OF INCOME (INTER SOURCE). SET OFF OF LOSS FROM ONE HEAD AGAINST THE INCOME FROM ANOTHER (INTER HEAD) ...

Read More
Posted Under: Income Tax |

Speculation Profit can be set off against carried forward speculation losses first

Commissioner of Income-tax, Delhi-VIII Vs Ashok Mittal (Delhi High Court)

First to setting-off the carry forward speculative losses against the speculative profit and then set-off the business losses to the extent of the balance speculation profit and other income. ...

Read More

Deduction U/s. 10A of the Income Tax Act is allowable without set off of losses of non-eligible units

Scientific Atlanta Vs. ACIT (ITAT Chennai)

In respect of AY 2003-04, the assessee had an unit in Chennai which was engaged in software development and whose profits were eligible for deduction u/s 10A. The assessee had another unit in Delhi which was engaged in trading and had suffered a loss. The assessee claimed that it was eligible for a deduction u/s 10A...

Read More

Set-off & Carry Forward of losses in direct tax code

Set-off & Carry Forward of losses in direct tax code: Carry forward of loss permitted only if return filed within due date Set-off & Carry Forward of losses [Sections 58 to 60] Income from various sources falling within any head of income shall be set-off. Income / Loss from Capital Gains can be set-off against […]...

Read More
Posted Under: Income Tax |

Income under each head has to be computed only after considering the income from various sources under the same head

Aayojan Investments Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)

11 If we go to the facts of the case the business loss returned by the assessee to the extent it could not be set off was in fact carried forward and while computing the gross total income the income under the head business was nil but in fact the assessee has incurred the net business loss aggregating to Rs.21,22,545/ -. The Hon'ble High...

Read More

Effectively utilize losses to reduce the tax burden

Income tax is a tax on income earned by a taxpayer in a given year. However, activity of a taxpayer may not always result in income. Certain activities may cause losses too. It would be unfair to tax a person on his income, while ignoring the loss. In recognition of this principle, there are elaborate […]...

Read More
Posted Under: Income Tax |

Losses Abroad to Reduce Taxable Income in India

An Indian company engaged in computer software business set up a trading office in Japan. The company's Japan branch suffered loss, which it claimed as deduction from profits earned in India. The assessing officer, however, held that since the profits of the trading office are taxable in Japan only, any loss incurred by the firm in respec...

Read More
Posted Under: Income Tax |

Browse All Categories

CA, CS, CMA (5,040)
Company Law (6,697)
Custom Duty (8,071)
DGFT (4,384)
Excise Duty (4,406)
Fema / RBI (4,431)
Finance (4,692)
Income Tax (35,022)
SEBI (3,751)
Service Tax (3,626)

Search Posts by Date

November 2020
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30