23 November 2010
PLEASE CONFIRM : SHORT TERM CAPITAL GAIN ARRIVED OUT OF SALE OF A BUILDING HAS TO BE CREADITED TO P & L A/C U/S 41 (2) ALONG WITH CURRENT YEAR BUSINESS PROFIT / LOSS & THEN NET PROFIT / LOSS ARRIVED,
WHICH IN TURN CAN BE SET – OFF AGAINST CARRIED FORWARD (BROUGHT FORWARD) BUSINESS LOSS / GAIN &
THE RESUDIAL GAIN ONLY TO BE TAXED @30% OR IF RESUDIAL LOSS , THEN CARRIED FORWARD AS BUSINESS LOSS FOR FUTURE SET-OFF UNDER SAME HEAD IN NEXT 8 YEARS. REGARDS, LAL
23 November 2010
Section 72 2A: Loss under the head of business or profession cab be adjusted against the income of another head of income inclusing capital gain in the same assessment year.
Brought forward business loss can only be adjusted against business income.
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