How can we show a business related expense in Capital gains of the assessee?An expense in business is not a capital related expense to be adjusted against Capital gains.
05 September 2012
Well, let me explain ... Proprietor loans personal capital to Company Company makes losses, including business expenses. Proprietor writes off loaned capital to business (losses+Expenses) as BAD DEBT = CAPITAL LOSS.
05 September 2012
Because of the simple reason that loans advanced do NOT fall under the category of capital assets and hence cannot be treated as loss from capital asset.
If you still believe it does, could you please tell whether capital gains is taxable when the company does well and redeems the loans?
Bro, i'd suggest that you go through the capital gains provisions well because you are very confused
CAclubindia
