Can we automise the set off of tax losses upto 75% of taxable income ?
Summary:
Tax losses allowed to be carried forward indefinitely however they can be set off only to the extent of 75% of taxable income of a positive taxable income year. Balance to be carried forward.
Example -
Carry forward loss from PY - 12,000
Total income after all adjustments for CY- 15000
In such case Loss cannot be set off as whole of 12000 but only for amount of 11250 (15000*75%)
Thereby Total taxable income is 3750 (15000-11250)
The remaining loss of 750 (12000-11250) will be carried forward in future.
Can we automise this logic ?
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