02 April 2010
Apart from inter-source adjustment of losses, please guide me headwise which loss can be adjusted against which profit /income(inter-head) and which losses need to be carried forward and for how long. Thank you.
1) Normal Business loss - Can be set off by other income except salary 2) Speculation Business loss - Cannot be set off by any other head income and nor from the normal business income 3) Long Term Capital loss - Can only be set off against Long term Capital Gain and not from any other head of income 4) Short Term Capital loss - Can only be set off from the Short term or long term capital gain and not from any other head of income 5) loss from house property - can be set off with the income from any other head
6) Loss from owing and maintaining horse - can only be set off with the income of same activity and with no other income 7) loss from other source ( in rare case) - can be set off with other head income
Period of carry forward Loss capital gain - 8years loss of business -8 years loss from horse racing - 4 years loss from house property - 8 years Loss from speculation business - 4 years
CAclubindia
