Why in Example 5 we carried back 28000*3/12 = 7000 and not the leftover from Loss 40000-1000-39000; 39000*3/12 = 9,750 ?
A
Awais·
See, the total profits of 31/3/23 are of 12 months. We can carry back loss for 12 months. We first gave the loss relief remaining after deducting it from current year in full to the previous 9 months in full. Then the remaining 13k loss relief was available which could only be used for the remaining three months out of the carryback 12 months limit. So we took only 3 months of profit of 31/3/23 year and used remaining loss relief in full on those 3 month's profits. And the 6k which were left of the loss relief can now be carried forward.
We don't need to time-apportion the loss relief in this case.
I hope my explanation is understandable.
We don't need to time-apportion the loss relief in this case.
I hope my explanation is understandable.