In this post, we will be seeing how to Set-off and Carry Forward Losses in Saral Income Tax.
Here we will see how to set off loss within various incomes, how to adjust brought forward losses and how to carry forward current year losses while doing Income Tax Return Preparation in Saral Income Tax.
The process of Set-off and carry forward is automated in Saral Income by following below explained settings.
Let us start,
Firstly, Go to Option settings under Masters Menu.
In the displayed window, select Auto Setoff option and Save.
Note: If Manual Setoff is selected, then Setoff of loss has to be manually done at the respective screen.
Enter all the income details in their respective screen. After entering the details, click on Cur yr Setoff option in the Tax Meter.
As the option is set to Auto Setoff, the income and loss will be auto taken and set-off against the applicable income, as per Set-off rules in Income Tax Act.
Note: In case of Manual Setoff, the income value will be shown on screen. User has to manually enter the loss amount against the applicable income type and save the details.
In case of any loss to be set-off from the previous year, click on Brought Forward Losses and enter the relevant loss details in the respective AY column.
Once, all the loss is set-off, the balance loss (if any), will be carry forwarded to next AY. The details of such loss carry forward can be viewed in Losses and allowances B/F tab.
The unabsorbed loss will be considered for being carried forwarded to next year
This completes the Set-off and Carry Forward Losses section in Saral Income Tax.