Section 72 Finance Act
Section 72 of the Finance Act: Carry Forward and Set-Off of Losses
Section 72 of the Income Tax Act governs the carry forward and set-off of business losses. It provides a crucial mechanism for businesses experiencing financial setbacks, allowing them to mitigate the impact of losses by adjusting future taxable income. The core principle is that a loss incurred in one assessment year can be carried forward to subsequent assessment years and set-off against profits earned in those years, subject to certain conditions and limitations.