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Setoff
It means adjusting loss with Income
Example 1
If a person has 2 business,In first business there is profit of 200000 and in second ,there is loss of 80000,
Then loss of 80000 can be setoff adjusted against profit of 20000 and PGBP Income will be 120000
Example 2
If a person has loss from house property of 300000 and profit of business of Rs 400000
Then loss of 300000 can be setoff adjusted against PGBP Income of 400000 and Gross total Income will be 100000
Types of set off
| Intra head set off | Inter head set off |
| It means adjusting loss under One head of Income with Income under Same head. | It means adjusting loss under One head of Income with Income under another head of Income. |
| Example:- Adjusting loss from one business with profit under another business. | Example :-Adjusting Loss from house Property with business profit. |
| (Refer Example 1 above) | (Refer Example 2 above) |
