Jayesh (Proprietor) (141 Points)
02 December 2014In a PVT LTD company, I had FMPs (less than 3 years holding period) that matured in current financial year. Can the short-term capital gains get adjusted against company expenses?
Rohit Gupta
(Audit Executive)
(271 Points)
Replied 02 December 2014
Dear Jayesh,
As per Section 71 of Income Tax Act 1961 loss under one head of income can be set-off against income assessable under any other head of income. After that some exceptions are provided and no exception is provided for Business Losses that can be set- off against Short Term Captial Gain.
So in your case you can claim set off of Business Losses aginst Short Term Capital Gains. But first you need to calculate first the PGBP Income or loss and if under the PGBP there will be any loss only then you can claim the set-off. Business Expenses directly can't be set-off against Capital Gains
Regards
Rohit Gupta
RHT1203 @ GMAIL.COM
CAclubindia
