Set-off and carry-forward are concepts that help us grasp how flexible the tax system is.
Losses incurred in a particular financial year need to be declared while filing an ITR so as to be able to carry forward them to the next financial year and set them off against the future profits of certain income heads.
Steps to report brought forward losses on Quicko:
- Navigate to the Additional Details tab from the side nav
- Click on Brought forward losses
- Select the Assessment Year where you have brought forward losses and add details like:
- Original Filing Date
- House Property Loss
- Loss in Capital Gains- Short Term and Long Term
- Loss in Business & Profession- Speculative and Non-Speculative
Loss under any head of income except Income from House Property cannot be carried forward to future years if the ITR has not been filed within the due date as per Sec 139(1)
Read more about Set Off and Carry Forward of Losses under the Income Tax Act