Guys URGENT help needed

Tax queries 1380 views 6 replies

guys please help :

there is a limited company (unlisited), due to some financial problem there is no routine business since past few years but the fixed assets and current assets are in place. now the company has solved the problems and sold a capital assets. now the question :

 can the company set-off the capital gain with current year business loss or previous year business loss ?

because some have the opinion that since your sales are nil and the plant was shut down that means there is no business hence you cannot setoff the the current year or previous years business loss with capital gain as to set-off you need to have running business

 

guys your answers will be appreciated, if u have a case law or sections or notifications it can prove a great help to me !!!

please reply

Replies (6)

you are correct since your sales are nil and the plant was shut down that means there is no business hence you cannot setoff the the current year or previous years business loss with capital gain as to set-off you need to have running business

Anyway capital gain is not allowed to set off against any other head of income...so no diffrance between carry forward or current year loss.

Originally posted by :ARUN KUMAR V
" Anyway capital gain is not allowed to set off against any other head of income...so no diffrance between carry forward or current year loss. "

 

but current year inter head i guess i allowed

but sir note inter head adj. is not appliccable in capital gain head

laxman is absolutely rite

any gain arising from sales of assets cannot be set off from business loss. plz refer section Section 74 of the income tax act.


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