set off of losses against short term gain


This query is : Resolved 

19 February 2008 Dear Sir,

can we adjust short term gain fund write/off against business losses in same financial year.

Regards,

Lalit kr Sharma

19 February 2008 Loss relating to short term capital asset is to be set off against gain from long term capital asetand/or gains from any other short term capital asset in the same assesment year [section 70(2)]

19 February 2008 As per Section 71(2) Where in respect of any assessment year, the net result of the computation under any head of income, other than Capital gains, is a loss and the assessee has income assessable under the head Capital gains, such loss may, subject to the provisions of this Chapter, be set off against his income, if any, assessable for that assessment year under any head of income including the head Capital gains (whether relating to short-term capital assets or any other capital assets).




20 February 2008 YES THE BUSINESS LOSS CAN BE SET OFF AGAINST SHORT TERM CAPITAL GAIN BUT SHORT TERM CAPITAL LOSS CANNOT BE SET OFF AGAINST BUSINESS PROFIT .


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