Chapter 14: Set off and carry forward of losses If you need more information visit Bbsnotes.com
Very Short Questions and Answers 1. What is set off a loss? Mention the methods of setting off losses? An adjustment of losses subject to the certain rules against incomes is known as set off of losses. The three methods are: * Carry forward * Carry backward » A combination of a method 2. Briefly state the provision related to an adjustment of loss on a long-term contract. Loss arising from a long-term contract obtained under global competition can be carried backward to proceeding to income year or years as per written approval of the Inland Revenue Department.
NUMERICAL PROBLEMS 3. Mention the allowed tenure for the adjustment of the following losses. a) Business loss b) Investment loss c) Loss of BOT/ BOOT d) Loss on an entity conducting petroleum business SOLUTION a) Next 7 years b) Next 7 years ¢) Next 12 years d) Next 12 years