Why current years Business loss cant be set off against salary income? what is the reason behind it ?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 15 August 2012
Previously it used to happen that many of the assesses use to work in industry part time & also do their business. So they us to show more deduction in their business & reduce the profits or sometimes show loss. This loss was being set-off against salary income, so that the assessee was required to pay tax.
That's why the FM had made the provision that the assessee was not allowed to set-off business loss against salary income.
Gaurav Tripathi
(Working with DIAGEO-Leading Drinks Manufacturing Company)
(210 Points)
Replied 15 August 2012
CAclubindia
