Carry forward Set off of different nature of losses
Summary:
In Indian Income tax laws, we have to compute tax basis different heads of income & all heads have their own loss calculation, deferral & utilization method. In below example, we have different nature of losses like Long Term Capital Gains, Business Losses, Short term Capital Losses.
Income from PGBP: (200,000)
Income for Long Term Capital Gains: (100,000)
Income from Short Term Capital Gains: 500,000
For carry forward & utilization, these tax losses are not to be set off & to be carry forward differently for different periods. Example:
Total Taxable Income: 500,000
Total business loss to be carried forward: 200,000
Total Long term Capital Loss to be carried forward: 100,000
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