CAF-2 · Chapter 9 · Question 4 of 15
If a taxpayer sustains a general capital loss (under Section 59) during a tax year that cannot be fully set off, what is the maximum period it can be carried forward?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Up to 6 immediately succeeding tax years.
Explanation
The amount of capital loss which cannot be set-off shall be carried forward up to six (6) tax years immediately succeeding the tax year for which the loss was first computed. (Note: For losses on *securities* under Sec 37A, the carry-forward period is 3 years).
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