20 July 2010
Company having business of purchasing land & developing them to sell them
In the normal course of business comapny have incurred exepnditure. However compny have not made any sales during the year.
Hence company incurred losses. Only other source of income is interest on term deposits from bank.
Since this income will be treated as income from other sources. i want to know wether business losses can be adjusted against this income while preparing Computation of income under income tax act.
And what will be the provision for tax. Net off of Business & Other sources or only for Other sources.
20 July 2010
Business loss of the previous year can be set off against any head except salary in the same previous year and it can be carried forward to next 7 assessment year from the business head only so total period is 8 years. in present case u can set of ur business loss from other source income.
CAclubindia
