set off of horce races losses

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ankitaggarwal4u (Querist)

05 May 2008 CAn,t th loss for one horse race be set off against income from another race horse that took place in diff. city?
say for e.g.
Income from horse races in Delhi(Gross)- Rs.40000,,,
and Loss from Race horse in Banglore- Rs.21,000..
Can they be set off or not?
and if not why so?

ankitaggarwal4u

ankitaggarwal4u (Querist)

05 May 2008 plz respond
itz confusin a lot

R.V.RAO

R.V.RAO (Expert)

05 May 2008 YES ,IT CAN BE SET OFF. LIKE UNIT PROFIT OR LOSS A/C OF ALL UNITS ARE REFLECTED IN A SINGLE BUSINESS ,GET SET OFF .
R.V.RAO

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)

05 May 2008 Yes it can be set off

Amit Sharma

Amit Sharma (Expert)

05 May 2008 Yes it can be set off . According to Income tax Act, other than capital gains the other 4 heads of income can be set off in any combination what so ever.

In case of Capital Gains.

Short term capital losses:- can be set off with long term capital gains.

Long term capital losses:- can be set off with another gross up of both short term and long term capital gains.

Hope now your doubt in clarified.

Amit Sharma

Amit Sharma (Expert)

05 May 2008 If you in - turn have any more doubts on set off read section 70 of Income Tax Act,

ankitaggarwal4u

ankitaggarwal4u (Querist)

05 May 2008 hey evry1 thnx a lot for th responses
but th thing i can not get is i m a reading the book by Mr. Girish Ahuja n it says k it cannot be set off,(why that so,reason i cannot get)
I am not doubting all yours knoeledge but th thing is k is there a diffence between the treatment of "loss from maintance of RACE HORSES n that of HORSE RACE"
plz dont mind n respond

R.V.RAO

R.V.RAO (Expert)

05 May 2008 Loss from owning and maintaining race horses [Section 74A] :- Any loss arising from owning and maintaining race horses can be set off against income from such activity only in the same assessment year or in subsequent assessment years (in case of carry- forward). In case of this loss, it is allowed to be carried forward up to four assessment years.
Concluson : Loss under any head can be set off against speculative income, capital gain income, income from maintaining race horses. But the reverse is not possible. Loss from speculation, loss under capital gain and loss from maintaining race horses can be set off only against the respective specific income. In other words, loss from speculation can be set off only against speculation income. Loss from capital gain can be set off only against capital gains income and so on.

A loss from any source cannot be set off against winnings from lotteries, crossword puzzles, races (including horse races), card games, other games or any sort of gambling or betting. Loss on bonus stripping/dividend stripping cannot be set off against any income. Return of loss must be filed within due date of filing of return or else carry-forward of loss to the subsequent year is not allowed. However, this condition does not apply in case of house property loss and unabsorbed depreciation.

SOURCE: SRI SACHIN JAIN C.A.
https://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7027

R.V.RAO

ankitaggarwal4u

ankitaggarwal4u (Querist)

05 May 2008 thanx sir
that solves my query n drop me on an conclusion that
loss from race horses can be set off with their respective income
but, loss from horse races cant be set off from any where.
now i got th diff.
thnx a lot so muchhh

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