any tax lawyear pls. help me

The One Says:

I am not a tax lawyer but here is some information that might help you:

There is a distinction drawn between loss in speculative business and loss in any other business. Speculation loss can be set off only against speculation income. For example, loss from speculation in shares can be set off against income from speculation in commodities, but not against share brokerage income or salary income.

Set-off, as a tax-saving instrument, works only under certain conditions and is not always helpful

What is more, such speculation loss can be carried forward for a period of four years only. Even in those four years, it can be set off against income from speculation business only.

Also, adjustment or carry forward of loss is not an inherent right. One requires specific provision in the Act permitting such right. But, once such a right is available, an assessee cannot, by choice, forego it in one year and choose to exercise it in the second year, when he expects a much higher income.

One of the critical conditions for availing the benefit of carry forward of loss to future years is that the return of income for the year, in which loss has been incurred, should be furnished within the due date. This condition is applicable for carry forward of loss to next year and does not affect the right to adjust or set off loss in the same year. As a measure of relaxation, unadjusted depreciation can be carried forward even if there has been delay in furnishing the return.

Hope it helps.