Set off

This query is : Resolved

PINAL ACHARYA (Querist)
Follow

02 August 2013 I WANT TO KNOW WHICH SET OFF IS AS PER RULE & CAN POSSIBLE TO DO..?

QUE. - FIND SET OF FOR AY 2012-13, -- iNDIVIDUAL HAVE SPECULATION LOSS C/F FOR AY 2011-12.RS.600000/-

INCOME OF AY 2012-13 IS INTEREST RS.3300000/- , SPECULATION INCOME RS.700000/-, BUSINESS LOSS INCULDING (INTEREST PAID OF RS.2900000/-) RS. 3100000/-

WHICH ANSWER IS CORRECT

OPTION 1 - SPECULATION INCOME 700000 - SETOFF LOSS OF AY 2011-12 RS.600000/- = NET 1000000/-

& INTEREST INCOME 3300000/-- CURRENT YEAR BUSINESS LOSS SETOFF rS.3100000/- = NET 200000/-

OPTION -2, SPECULATION PROFIT 700000 - CURRENT YEAR BUSINESS LOSS SETOFF UP TO rS.700000 = NET niL

& INTEREST INCOME 3300000/-- CURRENT YEAR BUSINESS LOSS SETOFF rS.2400000(31-7)/-= NET 900000/- & LOSS OF SPECULATION OF AY 2011-12 600000/- TO BE C/F

OPTION -3, INTEREST INCOME RS. 3300000- INTERST EXPS. RS.2900000= NET INTEREST 400000

BUSINESS LOSS 3100000- INTEREST EXS.2900000= 200000 NET BUSINESS LOSS

INTEREST 400000 = NET INTEREST INCOME 400000

SPECULATION PROFIT RS.700000/- - CY. BUSINESS LOSS SET OFF 200000- PY SPECULATION LOSS RS. UP TO 500000= NET NIL & LOSS OF SPECULATION AY 2011-12 CF RS.100000.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

02 August 2013 in case of speculation loss can be set off against speculation income only and not against any other income.

PINAL ACHARYA

PINAL ACHARYA (Querist)
Follow

02 August 2013 out of above three option which is correct one..?

or give me yr reply by calculating taxable income ..please

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

02 August 2013 U can set off loss of Rs 31,00,000 against int (assume to be taxable under other sources) of Rs 33,00,000
Net effect Rs 2,00,000 income from other source and u can set off 6,00,000 against speculative income of Rs 7,00,000= net speculative income of rs 1,00,000.

Pls be ready for srucitny by the end of this year or till march 2014 in my opinion.

PINAL ACHARYA

PINAL ACHARYA (Querist)
Follow

02 August 2013 why ..is there any special clause which r hit here,,,, so u give this opinion..?

plz let me know

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

02 August 2013 yes business loss can be set off against income from other sources but speculative loss only against speculative income.

PINAL ACHARYA

PINAL ACHARYA (Querist)
Follow

02 August 2013 no no ..i m asking 4 scrutiny reason?

PINAL ACHARYA

PINAL ACHARYA (Querist)
Follow

02 August 2013 and whether the interest we receive on FD can be consider only as IFOS ...or Business Income ..?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

02 August 2013 yes when there is huge set off of losses then directly they will catch u over and above u have speculative loss set off that is y from my exp i said that way.

Message likes : 1 times

PINAL ACHARYA

PINAL ACHARYA (Querist)
Follow

02 August 2013 oh...really thanks 4 yr info..

PINAL ACHARYA

PINAL ACHARYA (Querist)
Follow

02 August 2013 and whether the interest we receive on FD can be consider only as IFOS ...or Business Income ..?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

02 August 2013 FD int is income from other sources.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now