Treatment of losses of Investment Fund - Income Tax - Ready Reckoner - Income Tax

Treatment of losses of Investment Fund Where in any previous year, the net result of computation of total income of the investment fund [without giving effect to the provisions of clause (23FBA) of section 10 ] is a loss under any head of income at the fund level then first fund will be set-off such losses and if such loss cannot be or is not wholly set-off against income under any other head of income of that previous year, then out of such losses For losses under head PGBP : Only Investment Fund will carried forward set-off such PGBP losses. In case of losses under any other head : Fund will pass such losses to Unit Holders who holds units for atleast 12 months or more, therefore such losses shall be carry forward set-off by unit holders. Notes: - If units not hold for 12 months, then such losses shall not be allowed to unit holders and as well as Investment Fund. Before 01.04.2019 all losses carried forward by fund only but from 01.04.2019 losses other than PGBP loss allowed to be carried forward to unit holders so any accumulated losses other than PGBP loss at fund level as on 31.03.2019 shall be distributed to unit holders holding units as on 31.03.2019 and allowed to carry forward and set off to unit holders for remaining period.