Setoff losses

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Mohammad Khaleel (Querist)
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28 October 2014 A PRIVATE LIMTED COMPANY HAVING UNABSORBED DEPRECIATION LOSS AND BUSINESS LOSS CARRIED FORWARDING FROM ASST. YEAR 2012-13. CAN WE SETOFF THESE LOSSES WITH LONG TERM CAPITAL GAINS OF CURRENT FINANCIAL YEAR 2014-15

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 October 2014 1. As per Section 72 of the Income Tax Act, 1961 brought forward business loss can be set off only against income under the head Profits or Gain of Business. It CANNOT be set off from any other head.

3. As per Section 32, unabsorbed depreciation can be set off from income under ANY head of income.

Summary - Business loss of AY 12-13 CANNOT be set off from LTCG in AY 14-15.
Unabsorbed depreciation of AY 12-13 CAN be set off from LTCG in AY 14-15