Business loss set-off

1. Only speculative loss can be set off against speculative income.

2. C/f of Speculative loss can be done upto 4 years.

Originally posted by : santosh
	hello, i need a clarification on the following matters:-     1)  can brought forward business loss can be set off against speculation income?      2) suppose if the speculation loss is first computed for the A.Y. 2000-2001, then upto which A.Y. it would be           allowed to be carried forward?       please reply...awaiting feedback

Hi santhosh

1. A brought forward business loss can be set off only against business income of the current year. Further only the brought forward speculation loss is to be set off against speculation income.

2. It can be set off for 4 years excluding the year in which it is incurred , that is it can be deducted in computing the income of PY 2003-04, AY 2004-05.

Agree with G.K. Bro....

Agree with G.K

can b/f loss from non speculation business be set off against profits 4m speculation business...!?

 b/f non speculation loss can only be set off against non speculation profit only. B/f  loss can only be set off against their respective head

Agree with GK Ji

@ above

the ans is

Business Income(Non speculative)      100000

Less B/f business loss                            (200000)

                                                                   (100000)

Speculative business                                                           100000

Note- Business loss will be carried forward