Capital gain query

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Does loss in Debt Factoring comes under Capital Gain or PGBP head? As per my analysis, it can well fall under Capital Gain. Please share your views.
Replies (1)

Debtors of the company does not constitutes an Capital Asset, hence the loss arising on Debt Factoring also would not be a Capital Asset & hence would come under PGBP & not Capital Gain.

Capital asset refers to an asset which is not held by the organization in the ordinary course of the business & is not intended for sale in the near future.  So loss/gain arsing from sale of an Capital Asset would be assessed under Capital Gains.  So I don’t think that your analysis is correct.

Debtors of the company are held in the ordinary course of the business & any loss arising in relation to such would be assessed under PGBP. 


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