Exceptions for Carry Forward Losses for 8 Assessment Years

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EXCEPTIONS TO THE RULE THAT LOSSES CAN BE CARRIED FORWARD FOR EIGHT ASSESSMENT YEARS

  1. Section 35AD: Loss of business which is specified under section 35AD can be carried forwards without any time limit.
  2. If business was discontinued and there is income chargeable under section 41(1)/ 41(3)/ 41(4) in respect of such discontinued business, then business loss of the previous year in which business was discontinued can be SET OFF against such incomes.
  3. Where business is discontinued in circumstances given in section 33B, and is re-established within the period given in section 33B, then the losses of such business including brought forward losses shall be:
  • Carried forward to AY in which business is re-established and SET OFF against PGBP
  • Balance carried forward to next 7 Assessment Years.
  1. Section 72A: In case of amalgamation, referred to in section 72A, the loss gets carried forward for more than eight assessment year.
  2. Section 72A: In case proprietary concern is succeeded by a company and conditions of section 47(xiv) are satisfied, then the loss gets carried for more than eight assessment years.
  3. Section 72A: In case partnership firm is succeeded by a company and conditions of section 47(xiii) are satisfied, then the loss gets carried for more than eight assessment years.
  4. Section 72A: In case of company is succeed by a LLP and conditions of section 47(xiiib) are satisfied, then the loss gets carried for more than eight assessment years.
  5. Section 72AA: In case of amalgamation referred to in section 72AA, the loss gets carried forward for more than 8 Assessment years.
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