Why business loss cannot be set off against salary

This query is : Open

Report Abuse Follow Query Ask a Query

Akshay R Jain

Akshay R Jain (Querist)
Follow

29 March 2013 whats the reason or logic

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
Follow

29 March 2013 dear Akshay lets take an example..

i earned salary say for Rs. 250000/-

and i does not have any investment u/s 80C..

but i have to save tax...

now i would show that i have started a new business in the month of march but no sale has taken place in the month of march..

in that case my P&L show business loss..

which i would set off my salary income..

to prevent such manipulation government has provided a restriction that income from salary cannot be set off with the business loss

Akshay R Jain

Akshay R Jain (Querist)
Follow

29 March 2013 If this is the reason sir i will give you an example i have a huge capital gain.In order to save the tax, i will create the business loss of what you gave as example than why govt is not preventing that manipulation

Upgrade to CAclubindia Pro. Subscribe Now!

Akshay R Jain

Akshay R Jain (Querist)
Follow

08 August 2013 Please provide the ans for the above

Akshay R Jain

Akshay R Jain (Querist)
Follow

08 August 2013 Please provide the ans for the above