Speculation Income
This query is : Resolved
16 April 2009
Hello sir,
A company whose principal business is purcahse and renting of properties has not generated any income in this year. But the general office, legal, preliminary exps w/off are debited to P/L amounting to Rs. 66000/-
Now the company earns speculation income by way of commodity difference amt to Rs.56000/- and interest on loan of Rs. 15000/-.
Which is the correct option:
1.Take the deduction of all expenses from speculation income,then loss from speculation loss will be (66000-56000)10000/- which cannot be st off against int. on loan.
2.Show the loss from business as Rs.66000/- which could be set off with int on loan and Rs.56000 as speculation income.
Regards,
Jyoti Baid
A company whose principal business is purcahse and renting of properties has not generated any income in this year. But the general office, legal, preliminary exps w/off are debited to P/L amounting to Rs. 66000/-
Now the company earns speculation income by way of commodity difference amt to Rs.56000/- and interest on loan of Rs. 15000/-.
Which is the correct option:
1.Take the deduction of all expenses from speculation income,then loss from speculation loss will be (66000-56000)10000/- which cannot be st off against int. on loan.
2.Show the loss from business as Rs.66000/- which could be set off with int on loan and Rs.56000 as speculation income.
Regards,
Jyoti Baid
16 April 2009
In my opinion, the second option.
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