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Set off of loss

18 November 2020

Mr A is director of ABC Pvt ltd. He recd salary from this company. He took loan from various parties at 13% and invested in ABC company. He recd interest from
company @ 12%. The difference between interest recd and interest paid is shown as loss from other sources. Can he set off this loss from salary income

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5 Replies

ayusmita (Tax consultant) (5885 Points)
Replied 18 November 2020

Yes he can but in current year means same year when the loss occurred
as it is not carry forward

1 Like

JATINDER KUMAR (Accountant) (3662 Points)
Replied 18 November 2020

No.....

He can not set off loss from salary invome

Aman Verma (209 Points)
Replied 18 November 2020

Loss from other sources can only be set off in the same year and cannot be carried forward except loss arising from maintainance of race horses

SHIVANI KUDTARKAR (511 Points)
Replied 18 November 2020

@ Jatinder Kumar
Is there any specific section or case law for not setting of loss against salary income

anil jain (Partner) (1067 Points)
Replied 19 November 2020

Income from Salary can be set off only with loss on self occupied property. ( loss due to interest on loan for purchase/construction) and not other losses.

Loan to a company by a director by taking loan from others is offence under companies Act.

Pl see rule 2(1)(c)(viii) in Companies (Acceptance of Deposit) Rules 2014.