CAF-2 · Chapter 13 · Question 8 of 15
If a foreign loss sustained under a specific head of income cannot be wholly set off in the current tax year, for how many years can it be carried forward?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Up to 6 immediately succeeding tax years.
Explanation
The foreign loss shall be carried forward to the following tax year and set off against the foreign-source income chargeable to tax under that head, but no foreign loss shall be carried forward to more than six tax years immediately succeeding the tax year for which the loss was computed.
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