Question

Explain the principle of loss return.​

Answer 1

Explanation:

A loss return is a communication forwarded by a taxpayer to the Income Tax department, informing that there is a loss incurred for a financial year. ... Setting off losses means the setting of losses in one head, against gains in another.

Answer 2

A loss return is a communication forwarded by a taxpayer to the Income Tax department, informing that there is a loss incurred for a financial year. Typically, the purpose of filing a loss return is to enable the taxpayer to carry forward the loss to future periods. Losses are inevitable while pursuing a business.