Set off and Carry Forward of Losses under the Income Tax Act of India

Abstract

Tax is the Government's main source of revenue, the development of the economy of any country it depends primarily on the tax structure it has embraced. A tax system that makes it easy to do Business and not getting a chance to evade taxes add stability to the economy of a nation.On the other hand, the tax regime that has tax evasion clauses and the one that does not facilitate business-friendly slows the growth of the infrastructure of the nation. Thus as tax structure plays an important role in the development of the economy. India's tax structure is well-developed.The power to levy taxes and duties shall be distributed among the three levels of government under the provisions of the Constitution of India. The system of Indian taxes has undergone many changes and yet it is still far ahead of being an ideal tax structure.Lots of problems like tax evasion, indirect tax reliance, black money, the existence of parallel economy shows that in the future, Indian taxation system will require some major reforms to tackle all these problems. The study is based purely on secondary data, in the following paper. Different figures are obtained from the various Government of India websites.