Ayushi Tax Project

“A PROJECT REPORT ON “SET OFF OR CARRY FORWA FORWARD LOSSES – AN ANALYSIS”

Submitted by:

Submitted to:

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$II sem

AC&NOWLED0!ENT I take this opportunity to express my profound gratitude and deep regards to my guide Mr  R.V.Vishnu Kumar for his guidance, monitoring and constant encouragement throughout the course of this semester on project “set off or carry forward losses  an analysis!. "he #lessing, help help and and guida guidance nce gi$e gi$en n #y him him time time to time time ha$e ha$e only only made made it poss possi# i#le le the the succe success ssfu full completion of the project.

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INTROD2CTION

"he pu#lic finance finance domain of conomics conomics deals with principles:cann principles:cannons ons of taxations. taxations. "here are $arious models of "axation #ut in the de$eloping economies progressi$e system of taxation has  #een ad$ocated which means a person ha$ing larger income should contri#ute con tri#ute more to the pu#lic exche;uer exche;uer in comparison comparison to the person ha$ing lesser income. 5hile dealing with the su#ject, su#ject, it has #een en$isaged that if a person has profits:income he should pay taxes if he has profit and losses simultaneously he should pay tax on net profit after deducting the losses and if he has resultant loss or only loss he is not re;uired to pay taxes. -owe$er, due to the complexity and need it has #een thought of to incorporate the pro$isions relating to set off and carry forward of  losses. 2dditional complexity has #een created and the losses ha$e #een restricted to #e set off  due to greediness of the legislators and tax administrators. If the losses could not #e set off under the same head or under different heads in the same assessment year, such losses are allowed to #e carried forward to #e claimed as set off from the income of the su#se;uent assessment years. "he set off and carry forward of losses can #e su# di$ided into two #road categoriesD  &cto#er, ?G>D, C7th &cto#er,?G>D  www.incometaxindia.go$.in,last  www.incometaxindia.go$ .in,last accessed on >Jth &cto#er,?G>D.  www.raag$amdatt.com,accessed on >7th &cto#er, ?G>D. www.kar$ydistri#ution.com,last www.kar$ydistri#ution.com,last accessed on >Gth &cto#er,?G>D.