CA PARAS BAFNA
(Practising CA )
(33423 Points)
Replied 03 November 2011
I have not come across such provisions.
In Income Tax Act Holding Company is an assessee different from its any kind of subsidiaries. So losses can be claimed by the respective assessee only.
In its Balance Sheet , the holding company shows the Investment in shares in the Subsidiary Company only like we are showing investment in the shares of any company.
jonesmith
(MD)
(28 Points)
Replied 04 November 2011
Yes Carry forward Business Loss cannot be set off against any other income head except business Income and Speculation Income. so this is ?
CA JAIKRIT MALIK
(CHARTERED ACCOUNTANT )
(71 Points)
Replied 04 November 2011
SIr ,
Suppose i want to close all my subsidiaries companies & done all those activities from my Parent company from current year onwards ......and my Net worth goes less than its Losses incurred.........so it would be preferable for us or not ? is it any benefit/ liability arise from it ?
Give me some suggestions Please
Losses 10-11 09-10 08-09
1. Holding Company 5.2L 3.2L 2.6L
2. Subsidiary 1 2.4L 1.8L 4.7L
3. Subsidiary 2 2.2L 3.2L 6.5L
Net worth 6L 5L 10L
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