Carry forward and set off of business loss - (New) Section 112 / (Old) Section 72

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....r any tax year, loss computed under the head "Profits and gains of business or profession" cannot be wholly set off against the income under any other head as per section 109, so much of the loss not so set off or the whole loss, as the case may be, shall be carried forward to the following tax year and -  • (i) be set off against the profits and gains, if any, of any busine....

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....fic research under Section 45(7). is required to be carried forward, effect shall first be given to the provisions of section 112. Under Section 72 of the Income Tax Act, 1961 [ Upto 31.03.2026 ] Carry Forward and Set-off of Business Losses [ Section 72(1) ] Section 72(1) provides that where, for any assessment year: • The computation under the head "Profits....

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....es special treatment for businesses covered under Section 33B. Section 33B relates to Rehabilitation allowance for discontinued businesses in certain circumstances. The proviso applies where: • Business is discontinued due to specified circumstances; • Loss arises from businesses covered under Section 33B; • Business is re-established, reconstruc....

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....t assessment years immediately succeeding the assessment year for which the loss was first computed.  Other Point Where the loss under the head PGBP (other than the loss from speculation business and specified business u/s 35AD), could not be set off in the same AY, because either the assessee had no income under any other head or the income was less than the loss, then such loss can be....