Arka Bose (None) (313 Points)
26 April 2010Hi,Income from subletting is taxed under income from other sources and so is income from maintaining race horses.But if an individual has a loss from maintaining race horses,it is allowed to be carried forward,but suppose i do incur a loss by subletting,why is isnt allowed to be set off or carried forward?
vishnupriya
(CA Final)
(1418 Points)
Replied 26 April 2010
To avoid double time setoff & carry forward on the same item, i think it is not allowed.
Arka Bose
(None)
(313 Points)
Replied 26 April 2010
Amir
(Learner)
(4016 Points)
Replied 26 April 2010
Dear Sir,
Income from subletting is generally taxable under other sources.
Loss under head other sources can be setoff with the Income of same year but cannot be carried forward to be setoff in future years.
The exception to the above is"Loss from owing & Maintaing Race Horses" - this loss can be carried forwad(max for 4 years) & setoff with the income from owing & maintaing race horses only..
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 26 April 2010
Dear Mam,
As Amit bhai said u CAN setoff income from other sources(other than 115BB) with any heads of income, but not carry forward.Whereas loss of maintaining and owning race horses can only be setoff against profits from maintaining and owning race horses. And eventhough it can be carried forward for 4 years it can be setoff again in future years against same profit only
Arka Bose
(None)
(313 Points)
Replied 26 April 2010
I would like you guys to know that i definitely know that only exceptions are on "maintaining race horses" and not other incomes in the head of income from other sources,
thing is i want to find the logic behind this,since both of them can incur loss and is very much business in nature (even though it is taxed under other sources) while other incomes under the head income from other sources like interest,pension(family) etc will not incur any loss(leave the other ones by money won in gambling etc coz they are of different nature sec 115BB)
(oh and i am a boy,so i would be happy if you stop calling me mam)
Tarun
(CA Final Student)
(89 Points)
Replied 26 April 2010
I think there will not b any loss in case of subletting also ....
In Case of sub letting you do not incurr any expenses ....
Further if you have further let out the property then only the income will come in ....
No Exp, No Deductions ...
Only Income ...
Hence, No loss arises ....
Arka Bose
(None)
(313 Points)
Replied 26 April 2010
well there may be loss as sometimes in an agreement the tenant who is running the subletting is on agreement that he/she has to pay the electricity bill or other type of charges in that case loss may arise but a rare chance indeed,but that rare chance also arises by maintaining race horses as well
AMIT SAWANT
(student)
(21 Points)
Replied 10 July 2011
income from other sources can not be carry forworded as there is no section in this regard in IT ACT. However for loss from owning race horses there is seperete section
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