Set-off of capital losses
This query is : Resolved
29 November 2011
There is a Capital gains arising of Rs. 30 crores.
There is a business loss of Rs. 20 crores in the same year.
There is also a carried forward Loss under the head Capital Gains of Rs. 20 crores.
How will the Capital gains be treated?
Thanking in advance!
There is a business loss of Rs. 20 crores in the same year.
There is also a carried forward Loss under the head Capital Gains of Rs. 20 crores.
How will the Capital gains be treated?
Thanking in advance!
29 November 2011
First, Set off of current year's business loss will be done against Capital Gains income of the same year.
.
In case the loss b/fd is Long Term Capital Loss, it can be set off only if the remaining loss of current year is also LTCG.
.
The Balance capital loss pertaing to the preceding AY, of Rs 10 Cr has to be c/fd to the next year.
.
In case the loss b/fd is Long Term Capital Loss, it can be set off only if the remaining loss of current year is also LTCG.
.
The Balance capital loss pertaing to the preceding AY, of Rs 10 Cr has to be c/fd to the next year.
29 November 2011
Also If you could quote some case laws to which I can refer and understand better?
29 November 2011
Can I first set off the b/f Losses under the head capital gains and carry forward my current year Business Loss in the next year???
I say this , As per S. 71 (2), "The loss under Capital Gains 'MAY' be set off against his income"
So can't this be interpreted as 'the Assessee's discretion if he wants to set off the b/f losses under the head capital gains first, and then the current year's business losses' ?
I say this , As per S. 71 (2), "The loss under Capital Gains 'MAY' be set off against his income"
So can't this be interpreted as 'the Assessee's discretion if he wants to set off the b/f losses under the head capital gains first, and then the current year's business losses' ?
13 December 2011
It is advisable to first set-off brought forward loss under capital gain against income under the head capital gain.
Thereafter current year business loss can be set off under the remaining capital gain.
The business loss to the extent not set-off will be carried forward.
Thereafter current year business loss can be set off under the remaining capital gain.
The business loss to the extent not set-off will be carried forward.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Liable to deduct tds and 44ADA
- Relief u/s Section 89
- Rent lease agreement
- TDS Challan Code
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Supply through E-commerce Operators
- STCG on ETF gold & silver
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
