set off of business loss


Can Carry Forward Business Loss be set-off against current year long term Capital Gain from sale of part of its own land , by a  Pvt. Ltd. company ?



Practising CA

Business Loss can not be set off against Long Term Capital Gains. 

Any brought forward loss can be set off against profits of any business in the subsequent years (upto 8 years)

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Chartered Accountant

Current Year Business Loss can be set-off against Long Term Capital Gain. 

Almost CA

@ devendra the query is about carry forward loss to be set off in the current year.

As rightly pointed out by paras sir Carry forward business loss has to be set off against only the current year profit or subsequent profit and this set off facility can be availed for 8 subsequent year provided that the original return was filed within due date as specified in Section 139(1)

Chartered Accountant

Thanks for correcting me Rakesh.

Chartered Accountant

Yes Carry forward Business Loss cannot be set off against any other income head except business Income and Speculation Income. 



Devendra Kulkarni

CA Final

devendra, 1} i think c/f non speculative businee loss can be set off against future any non - speculative business income only

and 2} c/f speculative business loss can b set off against future speculative business income only,


note : even through d business is not existant at d time of set - off of that c/f business loss { non-speculative / speculative }


pls correct my statement, if i wronge,

Practising CA

Swapnil has noted correctly that even if business A is closed but the brought forward losses of it can be set off against business B , provided the profits or nature of the business is same (means Speculative / non speculative)

Further, c/f means -from this year we are carrying it forward to the next year. So in the next year, it should be termed as brought forward .........

One more thing , b/f  non-speculation business loss can be set off against any other non speculative business of the current year, the income of which may be assessed under any other head of income. 

Example of any other business income- Shares held by assessee as trading assets- dividend u/s 2(22)(e) (deemed dividend)  on such shares would form part of business income. B/f Business loss can be set off against it.

Article assistant

i think that a simple aapproach to it can be taken

1. for current year loss:

The loss from non speculative business can be set-off against any income except salary.

2. for b/f loss:

The b/f loss from non-speculative business from previous years can be set off against non-speculative and speculative income only.

so to conclude we can say...........

a. that b/f loss can only be set-off against income from same head (including all sources of the head).

b. that the current year loss can be set-off from income of same head as well as other heads except salary.(including all sources of heads).

further all of the above explaination applies only for loss of NON-SPECULATIVE business only.




the loss of pgbp can be carried forward for 8 yrs only


and it can be set-off u/h pgbp only in subsequent yrs and under any head in current year except income from salary etc.



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