hi ,
it's a request I have a question please help me in the same .
I have a capital gain on
commercial property of rs 2.5crore
wherein I am developing a building where I have work in progress Rs16 crores (negative ).
Basically till the development is not complete it's a loss .
can this Capital gain be adjusted against the above development project loss in WIP
CG is on my individual name
&
project is on my proprietorships company
5 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 30 January 2021
Long term capital loss can be adjusted against only LTCG
Raj Malhotra
(47 Points)
Replied 30 January 2021
Yes both are LTCG & LTCL but loss is in project which is under Work in progress format
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 31 January 2021
WIP loss cannot be adjusted against LTCG
sabyasachi mukherjee
(27574 Points)
Replied 31 January 2021
Read sec 70 ..
for setting of loss from one head under the same head from two different source one short term and another long term.
In this case however, you cannot set off such loss .
wip cannot be valued on the basis of completed units.
But for matching concept certainly cost and revenue are calculated.
for setting of loss from one head under the same head from two different source one short term and another long term.
In this case however, you cannot set off such loss .
wip cannot be valued on the basis of completed units.
But for matching concept certainly cost and revenue are calculated.
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