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Business loss set-off

santosh (article) (79 Points)

12 May 2010

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

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10 Replies

Ankit CA and CS (Manager - Accounts) (204 Points)
Replied 12 May 2010

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

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

vikash rathi (Chartered Accountant) (787 Points)
Replied 12 May 2010

Originally posted by : Ankit CA &CS
	1. Only speculative loss can be set off against speculative income. 2. C/f of Speculative loss can be done upto 4 years.

agree with ankit

Max Payne (employed) (2569 Points)
Replied 12 May 2010

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.