Can we claim 80tta if oth sourc inc is setoff agnst bus loss

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This query is : Resolved

Nirmal Jain (Querist)

05 August 2013 Hello Sir,

How do we claim deduction u/s 80CCA (Int from Saving Bank A/c), if an individual also have business and his Income from Other Sources (incl. Int from Saving A/c and other Interest Income) is completely setting off against Loss from Business.
Ques: At the first place, Can we set off Int from Saving A/c against Loss from Business? If yes, then how to claim ded u/s 80TTA? If No, then can we just set off remaining income from Other Sources against Loss from Business (leaving Int from Saving a/c) and then can we at least claim ded u/s 80TTA?
Could you please clarify at earliest.

Thanks,
NC Jain

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

05 August 2013 In my view, you can adjust the business losses against income available under the other head of income (Except Salary Income) and can do your best to claim 80TTA deduction if the income remains alive (means not being set off) till the computation of total income.

Nirmal Jain

Nirmal Jain (Querist)

05 August 2013 Thanks for your quick reply sir, but if the business loss (say -15,000) is already greater than Total Income from Other Soureces (Saving Bank Int = 4500 + Other Interest Income = 4000), then it would be anyways set off totally. In such case, (a) should I just set off only Other Interest Income of 4000 and keep Saving A/c Interst of 4,500 as Other Source Income and then claim 80TTA Deduction or (b) set off totally and do not claim any deduction u/s 80TTA.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

05 August 2013 No, such options are not available. Set off 8500 income against loss -15000 and carry forward -6500 and not 11000.
.

Nirmal Jain

Nirmal Jain (Querist)

05 August 2013 Thank you very much sir for your clarification.

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