Business loss carry forward permits later set-off against business income, subject to time limits, priority rules, and timely return filing.

Unadjusted non-speculation business loss may be carried forward and set off only against profits and gains of business or profession in subsequent years, subject to an eight-year limit. Set-off of carried-forward business loss takes priority over unabsorbed depreciation and specified scientific-research expenditure. Carry forward generally requires a timely loss return and is available despite business discontinuance, ordinarily only to the assessee that incurred the loss, subject to stated succession-related exceptions. Unabsorbed depreciation and specified capital expenditure allowances remain separately eligible for indefinite carry forward.

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