Section 71(1) and sec 71(2)
This query is : Resolved
02 July 2012
Can someone explain what is the logic between Sec 71(1) and 71(2) of Income tax act?
Cause when someone refers Sec 71(2) first we do not understand why 71(1) is framed?
I tried reading the circulars on this section but nothing is relatable.
Kindly respond
Cause when someone refers Sec 71(2) first we do not understand why 71(1) is framed?
I tried reading the circulars on this section but nothing is relatable.
Kindly respond
04 July 2012
Hi Shruthi,
There is no much difference between the two sections except the use of english language.
In 71(1) Where there is no Income from Capital Gains. The words used is " Shall be entitled to sett off"
Whereas in 71(2), where there is Income from Capital Gain. The words used are "May be set off".
Now, I think the revenue is thinking in its own way and providing an option to pay Tax on Capital Gain and treat Loss under any other head as separate.
Please discuss.
There is no much difference between the two sections except the use of english language.
In 71(1) Where there is no Income from Capital Gains. The words used is " Shall be entitled to sett off"
Whereas in 71(2), where there is Income from Capital Gain. The words used are "May be set off".
Now, I think the revenue is thinking in its own way and providing an option to pay Tax on Capital Gain and treat Loss under any other head as separate.
Please discuss.
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