Settoff

This query is : Resolved

sumit (Querist)
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27 May 2010 Please guide me on following points.

1. Can loss from other source setoff against income from Salary ? (Loss due to Interest paid on loan taken)

2. Can short term capital loss setoff against income from Salary ?

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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27 May 2010 1) U/s.71, loss from other sources can be set off against any income. (But no carry forward is allowed)
Hence loss from other sources can be set off against income from salary.

2) Short term capital loss can be set off against any capital gain. (It can be carry forward upto 8 years).
Hence short term capital loss cannot be set off against income from salary.