Set off of business loss from stcg (Income Tax)

This query is : Resolved

Author : Anonymous

( Author )
15 June 2012

Dear Experts,

Our partnership firm incurs loss during the year and short term capital gain arises on sale of fixed assets, Now I want to ask that can we set off the loss of business from Short Term Capital Gain on sale of fixed assets ?

Author : Anonymous

( Author )
15 June 2012

Dear Sir/Madam,

Kindly help me out.

My question is, we are registered dealer in Banglore under composition scheme.

So our consultant have calculated COT amount like this:-
1. Turnover (incl of tax)= Gross turnover-Payment to subcontractor

2. COT=Taxable turnover x 4%

My problem is how to adjust the entries in tally

Kindly give your valuable suggestion if any

Thanks

C.A Anshul Singhal

( Expert )
15 June 2012

Business Loss Can Not Set Off Short term Profit

Author : Anonymous

( Author )
15 June 2012

These assets are use for business purpose and now due to there is no existence of block, STCG arise, Can we set off the business loss from said STCG amount.

CA PARAS BAFNA

( Expert )
16 June 2012

Business Loss can be set off against Capital Gains-Whether ST or LT.
.
Loss under the head Capital Gains can not be set off against any other head, like Business Income or else.
.

CA CS Amit S. Kedia

( Expert )
16 June 2012

Yes, business loss can very well set off against the capital gains.

CA Mukesh Jain S

( Expert )
16 June 2012

Yes business loss can be set off against stcg in the current year but after the set off the remaining loss has to be c/f to next year & set off only against Business profit in the next year.