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    27 Setoff

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    Jay
    This document outlines the rules for carrying forward and setting off various types of losses against income in India. It shows that business losses can generally be carried forward for 4-8 years depending on the type. House property and capital gains losses can also be carried forward for 8 years. Losses from owning race horses or lottery/puzzle winnings can be carried forward for 4 years. The document also notes some exceptions and limitations to loss setoff rules.

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    Download as PDF, TXT or read online from Scribd

    27 Setoff

    Uploaded by

    Jay
    29 views1 page
    This document outlines the rules for carrying forward and setting off various types of losses against income in India. It shows that business losses can generally be carried forward for 4-8 years depending on the type. House property and capital gains losses can also be carried forward for 8 years. Losses from owning race horses or lottery/puzzle winnings can be carried forward for 4 years. The document also notes some exceptions and limitations to loss setoff rules.

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    This document outlines the rules for carrying forward and setting off various types of losses against income in India. It shows that business losses can generally be carried forward for 4-8 years depending on the type. House property and capital gains losses can also be carried forward for 8 years. Losses from owning race horses or lottery/puzzle winnings can be carried forward for 4 years. The document also notes some exceptions and limitations to loss setoff rules.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views1 page

    27 Setoff

    Uploaded by

    Jay
    This document outlines the rules for carrying forward and setting off various types of losses against income in India. It shows that business losses can generally be carried forward for 4-8 years depending on the type. House property and capital gains losses can also be carried forward for 8 years. Losses from owning race horses or lottery/puzzle winnings can be carried forward for 4 years. The document also notes some exceptions and limitations to loss setoff rules.

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    SET OFF AND CARRY FORWARD

    Business Loss Other Sources Capital Gain


    House winning from
    Heads of Income Specified Non - Property owing & Period for Carry forward & Set off Losses
    Speculation Lottories & Other
    Business Loss Speculation Loss maintaining LTCL STCL
    Loss Crossword Losses
    u/s 35AD Loss Race Horses
    Puzzle etc..
    Business Income
    Carry forward and set off is permissible for 4
    Speculation Business A.Y.’s immediately succeeding the A.Y. for
    a
    Income which the loss was ascertained & Filing of
    return u/s 139(1) is mandatory
    Specified Business Carry forward and set off loss in a subsequent
    a
    Income u/s 35AD year
    Carry forward and set off is permissible for 8
    Non - Speculation A.Y.’s immediately succeeding the A.Y. for
    a a a
    Business Income which the loss was ascertained & Filing of
    return u/s 139(1) is mandatory
    Salary Income a a …………………….Not Applicable……………
    Carry forward and set off loss upto 8
    House Property a a a
    Assessment Years & Filing of return u/s 139(1)
    Other Sources

    Owing & maintaining


    a a a Carry forward and set off is permissible for 4
    Race Horses
    A.Y.’s immediately succeeding the A.Y. for
    Winning from which the loss was ascertained & Filing of
    Lottories & Crossword a a a a return u/s 139(1) is mandatory
    Puzzle etc..
    Other Income a a a …………………….Not Applicable……………
    Capital Gain
    Carry forward and set off is permissible for 8
    Long Term Capital Gain a a a a a
    A.Y.’s immediately succeeding the A.Y. for
    which the loss was ascertained & Filing of
    Short Term Capital Gain a a a a
    return u/s 139(1) is mandatory
    Notes
    1. Loss from sale & purchase of Securities cannot be setoff against any other Income Chargeable to tax.
    2. Loss from exempt income cannot be setoff against Income Chargeable to tax.
    3. Before adjusting Inter head adjustment, one has to set off the loss under Inter Source adjustment.
    4. Unabsorbed deprecation loss can be carried forward to any number of years until it is fully set off & cannot be set off against casual income (like lottery winnings, crossword puzzles
    etc., u/s 58

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