The first thing that is subtracted from the income subject to tax under the heading "Profits and gains of business or profession" is depreciation. The unabsorbed component must be added to the amount of depreciation for the following year and is assumed to be part of depreciation for that year if such depreciation could not be fully offset against such income subject to tax in that prior year (similar treatment would be given to other allows as mentioned above). However, the following sequence of priority must be observed in the case of set-off.
The first changes should be made to account for existing spending on family planning, depreciation, and scientific research.
For the business loss that was moved forward, a second adjustment is required.