Set-Off and Carry-Forward of Losses
Definition
The income-tax rules allowing losses under one head to be set off against income, and unabsorbed losses to be carried forward to future years within limits. Different loss types have different set-off and carry-forward rules.
Related Terms in India GST
Clubbing of Income
Income-tax provisions that add certain income of a spouse or minor child to a taxpayer's own income to prevent tax avoidance by shifting income within a family.
Gross Total Income
The sum of income under all heads in India — salary, house property, business, capital gains and other sources — before Chapter VI-A deductions. Deductions are then subtracted to reach total taxable income.
PAN-Aadhaar Linking
The Indian requirement to link the Permanent Account Number with the Aadhaar identity number. An unlinked PAN can become inoperative, affecting return filing, refunds and TDS rates.
Faceless Assessment
An Indian income-tax process where assessments are carried out electronically without the taxpayer meeting an officer, aimed at reducing discretion and improving transparency.
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