Set off of losess

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Can b/f business loss of A.yr 2009-10 can be adjusted with speculation business income of A.yr 2010-11 u/s 72 ?

 

Thanks

Dalbir

Replies (11)

Yes it can be set-off.  However the reverse is not allowed.

 

Prior year business loss can be set off against speculation income, however loss from speculation can not be set off against income from business other than speculation business.

Sorry bros...!!!!!

The ans is 

NO...!!!!!!!

Current year Business Loss can be set off from any Income except Salaries (as per sec 71)

but brought froward business loss can be set off only against business income..!!

 

In the above scenario Business loss  FY 08-09 can not be set-off against Speculation Income in FY 09-10

 

for more details see the below link

https://www.vakilno1.com/bareacts/incometaxact/s72.htm

 

 

 

Thanks for oppurtunitylaugh

 

Phani m nt agree wd u...Giridhar n Ketan is rt

@ DALBIR-YES U CAN...

Dear Phani,

Thanks for ur reply. 

but does the business income excludes speculation income?

I don't think so.

Regards,

Dalbir

 

 

Rules A: Set off of losses – Intra head adjustments (Inter source adjustments)
 
Loss from one source of income can be adjusted against income from some other source of income under the same head.
 
 
It is subject to the following exceptions
 
1.    Loss from speculation business cannot be set of against profit from an non speculation business

(Interpretation: Loss from non speculative business can be set-off against speculation income)

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Profits & gains from Business or Profession income includes speculation income.i.e. Business income is divided into Speculation & non speculation income.

querry is regarding set off of b/f business loss(non speculative) with speculation business income of current yr.

 

Dalbir ji, 

B/f business loss (non speculation business) can be set off against any business profit (whether from speculation or otherwise) in next year(s) , Continuation of business is not necessary.

 

You can claim set off.

Business can be divided into two - Speculative and non- speculative ( for easy understanding)

B/f Non-speculative loss can be set off with both speculative and non- speculative income upto 8 years.

But  b/f speculative loss can be set off only with  speculative income upto 4 years.

I hope your doubt is clarified.

the business loss of the f.y cnt be setoff from the speculation business

of course it can be setoff,bt reverse is  Not possible


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