set off and carry forward of losses

This query is : Resolved

S. Raghuraman (Querist)
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02 April 2010 Apart from inter-source adjustment of losses, please guide me headwise which loss can be adjusted against which profit /income(inter-head) and which losses need to be carried forward and for how long.
Thank you.

CA Robin Betala

CA Robin Betala (Expert)
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02 April 2010 Hi S Raghuraman

Inter head set off are as below:-

1) Normal Business loss - Can be set off by other income except salary
2) Speculation Business loss - Cannot be set off by any other head income and nor from the normal business income
3) Long Term Capital loss - Can only be set off against Long term Capital Gain and not from any other head of income
4) Short Term Capital loss - Can only be set off from the Short term or long term capital gain and not from any other head of income
5) loss from house property - can be set off with the income from any other head

6) Loss from owing and maintaining horse - can only be set off with the income of same activity and with no other income
7) loss from other source ( in rare case) - can be set off with other head income

Period of carry forward
Loss capital gain - 8years
loss of business -8 years
loss from horse racing - 4 years
loss from house property - 8 years
Loss from speculation business - 4 years

S. Raghuraman

S. Raghuraman (Querist)
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02 April 2010 Thank you very much for your reply.
S.Raghuraman

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