set off and carry forward of income

Dear pls do not take otherwise but i have not seen any clause which says loss from race horses cannot be set off against income from race horses.

can u pls paste the relevant extracts of the act here to through some light on it

thanks

sunil

THEIR IS NOWHERE MENTIONED ANY SUCH THING IN SEC.70.......!!!!!!!!!!!!!!

i agree with ashish......hehe

Loss from Race horse can be set off from income from race horse. It can not be set off against any other income.

loss from race horses can only be set off against income from race horses.....

Dear Praveen,

The idea of the lawmaker is to check that the income of speculation dont get setoff from the actual income. Income from the race horses is a speculation one.Furthur, most of the time it is betted. So, It wont be safe to set it off with other incomes but it can be setoff with the same income.

Hence loss from race horses can be setoff with the income from race horses but not with any other income.

 Dear friend sec 70 says about inter source adjustment and it says that loss from the activity of owning and maintaining race horses is an exception to this sec 70..Which means u cant do inter source adjustment with the race horse loss..Hope sec 70 is clear now

And sec 74A says u can carry forward such loss for 4 years and set off against income from same activity