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Set off and Carry forward Losses: Computation of Total Income Video Lecture | Income Tax Laws - B Com

Name: Set off and Carry forward Losses: Computation of Total Income Video Lecture | Income Tax Laws - B Com
Uploaded: 2018-04-24T07:29:01Z
Description: Video Lecture & Questions for Set off and Carry forward Losses: Computation of Total Income Video Lecture | Income Tax Laws - B Com - B Com full syllabus preparation | Free video for B Com exam to prepare for Income Tax Laws.

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FAQs on Set off and Carry forward Losses: Computation of Total Income Video Lecture - Income Tax Laws - B Com

1. What is meant by "set off and carry forward losses" in the computation of total income?

Ans. Set off and carry forward losses refer to the process of adjusting losses from one source of income against the income from another source, or carrying forward the losses to future years for set off against future profits. This helps in reducing the overall tax liability of an individual or business.

2. How are losses set off against income in the computation of total income?

Ans. In the computation of total income, losses can be set off against income in the following manner: - Losses from one source of income can be set off against income from any other source in the same financial year. - Unabsorbed depreciation and capital losses can be set off against any other source of income, except income from salary, in the same year. - Business losses can be set off against income from any other head except salary income. - Losses from speculative business can only be set off against profits from speculative business.

3. Can losses be carried forward to future years if they cannot be fully set off in the current year?

Ans. Yes, losses that cannot be fully set off in the current year can be carried forward to future years for set off against future profits. The following are the provisions for carrying forward losses: - Non-speculative business losses can be carried forward for a period of 8 years immediately succeeding the year in which the loss was incurred. - Speculative business losses can also be carried forward for a period of 4 years immediately succeeding the year in which the loss was incurred. - Capital losses, other than losses on the sale of shares or mutual funds, can be carried forward indefinitely.

4. Are there any restrictions on the utilization of carried forward losses in future years?

Ans. Yes, there are certain restrictions on the utilization of carried forward losses in future years: - Carried forward losses can only be set off against income from the same head of income in future years. - The set off of losses against income in future years is subject to the provisions of the Income Tax Act, such as the maximum allowable set off limit and the conditions for set off.

5. Can losses be set off and carried forward in case of partnership firms or companies?

Ans. Yes, partnership firms and companies can also set off and carry forward losses in the computation of total income. The rules for set off and carry forward of losses for partnership firms and companies are similar to those for individuals. However, there may be certain additional provisions and restrictions specific to partnership firms and companies, as per the Income Tax Act. It is advisable to consult a tax professional or refer to the relevant provisions of the act for detailed information in such cases.

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	Dec 19, 2024 Last updated

Video Description: Set off and Carry forward Losses: Computation of Total Income for B Com 2024 is part of Income Tax Laws preparation. The notes and questions for Set off and Carry forward Losses: Computation of Total Income have been prepared according to the B Com exam syllabus. Information about Set off and Carry forward Losses: Computation of Total Income covers all important topics for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Set off and Carry forward Losses: Computation of Total Income.

Introduction of Set off and Carry forward Losses: Computation of Total Income in English is available as part of our Income Tax Laws for B Com & Set off and Carry forward Losses: Computation of Total Income in Hindi for Income Tax Laws course. Download more important topics related with notes, lectures and mock test series for B Com Exam by signing up for free.

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Video Lecture & Questions for Set off and Carry forward Losses: Computation of Total Income Video Lecture | Income Tax Laws - B Com - B Com full syllabus preparation | Free video for B Com exam to prepare for Income Tax Laws.

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Income Tax Laws

27 videos|25 docs|12 tests

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