Thursday 16 May 2013

Carry Forward & Set Off of Business Loss, But Not Unabsorbed Depreciation In Case of Profit u/s 44AD of Income Tax Act, 1961.


Section 44AD overrides Section 28 to 43 C.

Set off & carry forward of depreciation is governed by Section 32. Since Section 44AD overrides Section 32, unabsorbed depreciation cannot be set off against profits u/s 44AD.

However, carry forward & set off of business loss is governed by Section 72. Accordingly, brought forward loss can be set off against profits declared  u/s 44AD.
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3 comments:

  1. Anonymous26 July 2013 at 18:13

    Hello Hardik,

    If the brought forward losses is in excess and cannot be fully set off against profits under 44AD, can the remaining brought forward loss be carried forward to subsequent year? Your opinion will be highly appreciated.

    Thanks in advance
    Kiran

    ReplyDelete
  2. Unknown26 December 2013 at 21:52

    as per the general rule it can be carried forward for 8 years

    www.cacorners.com

    ReplyDelete
  3. CA Student31 March 2015 at 12:16

    Can you please let us know where to show brought forward loss in ITR 4S ?

    Thanx In Advance

    ReplyDelete

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