Set off of losses
This query is : Resolved
vipul Shah
(Querist)
21 August 2011
Mr X had discontiued business in PY09-10.
In that year he incurred a loss of Rs 3lacs which could not be set off against any income. Along with this there is c/f of loss of PY 06-07 of Rs 35000.
In PY 10-11 he recovered bad debts of Rs 40000.
My query is
1) Can he use recovery of bad debts for set off of loss pertaining to PY 09-10.
OR he can only used for set off of loss pertaining to year of discontiued business and c/f of loss can be set off againsr any other business profit.
In that year he incurred a loss of Rs 3lacs which could not be set off against any income. Along with this there is c/f of loss of PY 06-07 of Rs 35000.
In PY 10-11 he recovered bad debts of Rs 40000.
My query is
1) Can he use recovery of bad debts for set off of loss pertaining to PY 09-10.
OR he can only used for set off of loss pertaining to year of discontiued business and c/f of loss can be set off againsr any other business profit.
21 August 2011
First of all bifurcate the losses in two parts...that is unabsorbed depreciation and the other as losses....and now see the situation....
CA PARAS BAFNA
(Expert)
22 August 2011
In my view , it is compulsory and recommended that the loss of AY 2007-08
should be first set off.
.
It is not so that the recovery belongs to a particular year can be set off against the loss of same year.
.
The loss can be set off against any other business income within the stipulated time limit of 8 AY.
.
I also agree with the expert's advise regarding bifurcation into Dep Loss and Bus Loss.
should be first set off.
.
It is not so that the recovery belongs to a particular year can be set off against the loss of same year.
.
The loss can be set off against any other business income within the stipulated time limit of 8 AY.
.
I also agree with the expert's advise regarding bifurcation into Dep Loss and Bus Loss.
22 August 2011
I agree with the experts
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
- Query on effect of registration of property
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Number of years as per AS amortisation of Goodwill
- Equity Share Sale and Purchase
- Additional trade name
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Wrong CMPo8 file
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
