inter head setoff

Others 848 views 4 replies

Anybody please explain me "Why business loss cannot be set off against salary ?"  I want to know what is the reason or the logic behind this.

Replies (4)

Dear Dibyendu,

As explained by CBDT  - To prevent abuse of the set off provisions.

I think many cases must have came where salaried employee tried to evade tax by showing a bogus business & setting off its Loss from Salary. 

hi

you can't setup against salary Business loss because separate head and Business loss set-up only business income or Income from Other sources and Income from House property and Income from Capital gain, because salary is monthly basis you can't setup against salary mentioned above head you can setup

Originally posted by : Amir
Dear Dibyendu,
As explained by CBDT  - To prevent abuse of the set off provisions.
I think many cases must have came where salaried employee tried to evade tax by showing a bogus business & setting off its Loss from Salary. 

tatally agree with amir.

this is the only reason why loss of pgbp not allowed to be deducted from salary

agreed with amir

 

a nice one amir bhai


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