Page 85 - DCOM508_CORPORATE_TAX_PLANNING

Corporate Tax Planning Tanima Dutta, Lovely Professional University

Notes Unit 4: Set-off and Carry Forward of Losses

CONTENTS
Objectives

Introduction
4.1 Set-off and Carry Forward of Losses: Meaning and Scope
4.1.1 Inter Source Adjustment (Section 70)
4.1.2 Inter Head Adjustment (Section 71)
4.2 Section 71 B
4.3 Sections 72 & 80
4.4 Section 72A
4.5 Section 72AA
4.6 Section 72AB
4.7 Section 73 and Section 73A
4.7.1 Losses in Speculation Business (Section 73)

4.7.2 Carry Forward & Set-off of Losses by Specified Businesses (Section 73A)
4.8 Section 74
4.9 Section 74 A (3)
4.10 Section 78 and Section 79
4.11 Order of Set-off of Losses
4.12 Summary
4.13 Keywords
4.14 Review Questions
4.15 Further Readings

Objectives

After studying this unit, you will be able to:

State the meaning and scope of set-off and carry forward of losses
Discuss the provisions for set-off and carry forward of loss from house property and of
business losses
Describe the carry forward and set-off of accumulated business losses and unabsorbed
depreciation in certain cases of amalgamation or demerger

Explain set-off of losses of a banking company against the profit of a banking institution
under a scheme of amalgamation
Recognise the concept of losses in speculation business and carry forward & set-off of
losses by specifi ed businesses

Identify the provisions to the set-off and carry forward of losses under the head capital
gains
State the set-off and carry forward of losses from the activity of owning and maintaining
race horses

80 LOVELY PROFESSIONAL UNIVERSITY