Set off of non speculative loss

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sriram (Querist)
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10 February 2010 Whether a non speculative loss be set of against share of profit of a partner of a firm carrying on CA practice and whether any CA rules affects dis?

veena

veena (Expert)
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10 February 2010 Refer sec. 70- loss from one business source can be adjusted against other business income

However refer code of ethics for practicing CA. According to me a practicing CA cannot engage in any other business. So practical advice is do not set off business loss against CA firm share of profit

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 February 2010 Share in the total income from a partnership firm is an exempted income under section 10(2A) of the Income tax Act,1961. So question of set off as cited in the query does not arise. In view of that reference to code of ethics is not being made.

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