Please have the patience to go through the following situation and confirm whether the computation of income made is properly made as per provisions of the Income Tax Act or there is any discrepancy? One special point i wanna know is whether Depreciation of Non-Speculative business of the current year can be set off against any income from Non-Speculative Source or from any other head of income (other than Salary Income) in the current year?
AY 2009/10
Details:
Salary Income 10000
Speculative Business Loss (including depreciation Rs.500) (1500)
Non-Speculative Business Loss (including depreciation Rs.300) (800)
Non-Speculative Profit 700
Computation of Taxable income for AY 2009/10
Salary Income 10000
Non Speculative Profit 700
Less: Depreciative in respect of Non-Spec Business 300
Depreciation in respect of Spec Business 400 Nil
Taxable Income AY 2009/10 10000
Details of Loss Carried Forward to AY 2010/11:
Speculative Business
- Loss Rs.1000
- Depreciation Rs. 100
Non – Speculative Business – Loss Rs.500
AY 2010/11
Details:
Salary 10000
Speculative Business Income 1000
Non-Speculative Business Income 560
Computation of Taxable income for AY 2010/11
Salary Income 10000
Speculative Business Income 1000
Less: Brought Forward Speculative Loss 1000 Nil
Non-Speculative Business Income 560
Less: Brought Forward Non-Speculative Loss 500
Unabsorbed Speculative 60 Nil
Taxable Income AY 2010/11 10000
Details of Loss Carried Forward to AY 2011/12:
Unabsorbed Depreciation (Speculative) Rs. 40
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