mr hussey has
1. business loss rs 130000
2. salary 240000
3. speculation gain 110000
total income for taxability?
Set off
Replies (11)
Income is Rs.350000/-
I beg to differ. Total Income is Rs 260000. Speculative gain can be set off any business loss provided conditions of section 71 is met
it is not provided in question
that the business loss is specified business loss or just business loss
that the business loss is specified business loss or just business loss
There will not be any tax liability as it's below the exemption limit and the Total income for computation would be 2.4l
20000 will be carry forward after setting off the Business loss with speculative gain and as said by Mr.Gosh if satisfy sec 71
20000 will be carry forward after setting off the Business loss with speculative gain and as said by Mr.Gosh if satisfy sec 71
Then assumption on the nature of loss is to be taken. Speculative loss is of special nature whereas business loss is of General nature. If specific nature is not mentioned it has to be assumed as General business loss.
Yes it was my computation mistake. Total income will be Rs. 240000 and Rs 20000 will be carried forward. Thanks for correction, Mr. Sunil.
Also speculation gain added in income
| Originally posted by : Rashmi Gandhi | ||
 |
Also speculation gain added in income |  |
Ms.Rashmi Gandhi , Speculation Income would be added and sett off against the Business Loss and only the final Numbers are to be taken for the considersation. In this case INR 20,000 would again be carry forward as Business Loss cannot be set off against the salary Income so only the salary part would be coming and there will not be any tax liability as that being under the Basic exemption limit.
Regards,
Sunil Sharma
How normal Loss set off from Speculation Gain
Kindly refer the file attached which are the FAQ's issued by the Income Tax Authorities and refer the Point Number 1 under the head
* Restrictions to be kept in mind while making intra-head adjustment of loss
also find the following link for the same
https://www.incometaxindia.gov.in/Tutorials/21-%20MCQ%20set%20off%20and%20carry%20frwrd.pdf
Hope this would clarify..!!
Regards,
Sunil Sharma
Please read section 71 and section 73. All the confusions will be cleared. In nutshell, there is no significance of speculative and non speculative income. Only speculative business loss has special treatment in income tax. Speculative business loss can be set off only against speculative business income. This is the only implication of speculative loss.
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