Explain income tax act provisions regarding set off and carry forward of the capital losses. Also explain when can a person be taxed in respect of income of other person giving few examples?
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Explanation:Article covers Income Tax Act provisions related to Carry Forward and Set Off of Losses with Frequently asked Question and Answers.
Loss from exempted source of income cannot be adjusted against taxable income
If income from a particular source is exempt from tax, then loss from such source cannot be set off against any other income which is chargeable to tax.
E.g., Agricultural income is exempt from tax, hence, if the taxpayer incurs loss from agricultural activity, then such loss cannot be adjusted against any other taxable income.
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