Business and profession- c/f and setoff

Hi Friends,

Is the following Computation correct:

Income from salary:                        90,000

Income from Business or Profession:

Speculation Income : 55,000

Derivative Loss:        -1,15,000

                                   -60,000

B/f Spec. loss            -55,000         -1,15,000 (point here is setoff b/f spec loss against cy. spec income)

Income from Capital Gain                2,00,000

(short term 111A)

Income from Other sources               20,000

GTI                                                  1,95,000

                                      or

My opinion was that first u should setoff intra head cy. business income from all sources and then setoff brought forward loss.

and accordingly in the instant case the brought forward loss cannot be set off as net business income results into loss.

am i correct?

Replies (1)

Hi, I am of the opinion that derivative loss also falls in the category of speculation bussiness so correct computation should be as follows  : 

Income from salary                   Rs 90000

Income from PGBP Rs 55000

        less :                  Rs 55000 Rs 0

Income from Other sources    Rs 20000

Income from Capital Gain        Rs 200000

Total Income                                =Rs 310000

 

Now ,Speculation loss of Rs 115000 will be carried forward for next  4 Years .

Note : Speculation loss can only be adjusted against speculation income also Inter - head is not allowed in this case , but you have done so . 

Yes you are correct , first current year loss to be adjusted and then to adjust brought forward loss . 

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