income tax

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abhishek chopra

abhishek chopra (Querist)
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26 April 2010 pls clarify me about set off of speculative business losses

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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27 April 2010 The loss of a speculation business of any assessment year is allowed to be set off only against the profits and gains of another speculation business in the same assessmentyear.
The speculation loss not set-off in the same assessment year, is allowed to be carried forward to subsequent years and set-off only against income of any speculation business.
The loss in speculation business can be carried forward only for a maximum period of 4 years from the end of the relevant assessment year in respect of which the loss was computed.
Loss from the activity of trading in derivatives, however, is not to be treated as speculative loss.

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taxindiaconnect

taxindiaconnect (Expert)
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27 April 2010 Agree in full with Ramesh, A wll explined reply.

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
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27 April 2010 In addition to the above, return should be filed on time to carry forward the same.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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27 April 2010 AGREED WITH EXPERTS. FOR CARREID FORWARD OF LOSSES, RETURN TO BE FILED WITHIN TIME LIMIT. IN CASE OF BELATED RETURN, NO LOSSES CAN BE C/F.

abhishek chopra

abhishek chopra (Querist)
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27 April 2010 but if in speculative business transactions...is there any provision tat if the loss is much more than any income from other head then it will be treated as speculative business else it will be a normal business loss which can be set off with HP,OS

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 April 2010 As Mr. Krishnan replied that-
"The loss of a speculation business of any assessment year is allowed to be set off only against the profits and gains of another speculation business in the same assessment year" so it clearly implies that you can not set off Speculative loss against any other income even if it is of the same Asst Yr. There is no such provision for which clarification is sought for.