If after intra head or inter head setoff,still some loss remains.It can be carry forward to next period to be adjusted with next years income

This is called carry forward and setoff

#### Example 1

If a person has 2 business,In first business there is profit of 200000 and in second ,there is loss of 270000,

Loss upto 200000 can be setoff against profit.

Remaining loss of 70000 can be carry forward to next period

#### Example 2

Suppose in Example 1 there is profit of 300000 and 50000 next year

Total profit of next year=800000

Loss of previous period of 70000 can be setoff against it

Profit taxable for next year=800000-70000=Rs 630000

Summary

Set off |
Carry forward & set off |

It means Adjusting loss with profit |
It means carrying forward loss to next period and then adjusting it with future period income |

#### Note:-

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Not all loss are allowed to be adjusted with each other.
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There are various restrictions on intrahead setoff,interhead setoff as well as carryforward
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Lets study these losses one by one
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