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The Loss of Rs. 200000 can be set off with his Profit of Rs.
500000. Therefore the amount taxable under the head
Profit & Gains from Business will be (500000 – 200000) Rs.
300000.
Where the net result of computation made for
any assessment year in respect of any head of
income is a loss, the same can be set off
against the income from other heads.
X has two non speculative Besides he has income from house
businesses A & B. property.
Profit From Business A Rs. 70000
Loss From Business B Rs. 290000.
Income from House property Rs. 510000
Transfer of
commodity or
scripts
Speculative loss can be set off only against
speculative income.
Can be carried forward for 4 years.
Continuity of Business is not necessary.
Return of Loss should be submitted in time.
Long term capital loss can be set off only against
long term capital gains.
SHORT TERM CAPITAL LOSS SHORT AND LONG TERM GAINS 8 YEARS
LONG TERM CAPITAL LOSS LONG TERM CAPITAL GAINS 8 YEARS
LOSS FROM ACTIVITY OF INCOME FROM SUCH ACTIVITY 4 YEARS
OWNING & MAINTAINING RACE
HORSES
XY Ltd. wants to amalgamate with PQ Ltd.The following losses
/allowances of XY ltd. in the assessment of XY Ltd is given
below. Find out the tax implications:-
Unabsorbed depreciation of the previous year 1998-99-
Rs.36,000 Brought forward business loss of the previous year
2000-01 is Rs. 1,00,000;Unabsorbed scientific research
expenditure-Rs.11,000; bad debts-Rs.15,000;
Capital gain on transfer of capital assets to PQ
Ltd.Rs.2,00,000 and brought forward capital loss Rs.40,000;
Loss of XY before amalgamation PQ XY