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    Question

    A company incurs a loss of ₹5 lakhs in the current

    financial year. As per Income Tax Act, how is this treated?
    A It can be carried forward for 10 years Correct Answer Incorrect Answer
    B It must be adjusted against capital gains Correct Answer Incorrect Answer
    C It can be carried forward up to 8 years Correct Answer Incorrect Answer
    D It cannot be carried forward at all Correct Answer Incorrect Answer

    Solution

    Business losses can be carried forward and set off against business income for the next 8 assessment years.

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