Carry forward of losses extended for eligible start-ups, lengthening the qualifying post incorporation period for loss set-off. Clause 35 amends the proviso to section 79(1) to extend the period during which losses incurred in the post incorporation years by an eligible start up may be carried forward from seven years to ten years, subject to the condition that all shareholders who held shares carrying voting power when the loss was incurred continue to hold those shares on the last day of the previous year. The amendment is effective from 1 April 2023 and applies to assessment year 2023-2024 and thereafter.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Carry forward of losses extended for eligible start-ups, lengthening the qualifying post incorporation period for loss set-off.
Clause 35 amends the proviso to section 79(1) to extend the period during which losses incurred in the post incorporation years by an eligible start up may be carried forward from seven years to ten years, subject to the condition that all shareholders who held shares carrying voting power when the loss was incurred continue to hold those shares on the last day of the previous year. The amendment is effective from 1 April 2023 and applies to assessment year 2023-2024 and thereafter.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
