Section 20: Losses

20. Losses (1) Where a person satisfies the Director-General that he has in an income year incurred a loss in the production of gross income specified in section 10 (1) (b), (c) and (d), that loss— (a) shall not be deducted from or set-off against his gross income specified in section 10 (1) (a) for that income year; but I5 – 22 (1) [Issue 9] Income Tax Act (b) may, subject to subsection (2), be set-off against his gross income, other than gross income specified in section 10 (1) (a), derived in that income year, and any excess loss carried forward for set-off against income derived in the 5 succeeding income years. (2) The time limit of 5 income years under subsection (1) (b) shall not apply for the carry forward of any amount of loss that is attributable to annual allowance claimed in respect of capital expenditure incurred on or after 1 July 2006. (3) Where the Director-General is not satisfied with a claim for loss made by a person under this section, the Director-General shall determine the quantum of the loss available for set-off or carry forward and shall give notice of his determination to the person. [S. 20 amended by s. 20 (c) of Act 25 of 2000 w.e.f. 1 July 2000; repealed and replaced by s. 18 (h) of Act 15 of 2006 w.e.f. 1 July 2006 in respect of the income year commencing 1 July 2006 and in respect of every subsequent income year; s. 15 (b) of Act 18 of 2008 w.e.f. 19 July 2008.] continued on page I5 – 23 [Issue 9] I5 – 22 (2) Revised Laws of Mauritius