Business Loss
Definition
When total business expenses exceed total business revenue for a financial year, resulting in a net loss.
In Context
Business losses can be carried forward for 8 years and set off against future business profits. Cannot be set off against salary income. File ITR in the loss year (even if no tax due) to establish the loss for carryforward.
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⚠️ Disclaimer: This glossary is for educational purposes. Simplify Money provides analytical insights and guidance. We have applied for SEBI RIA registration.