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carry forward and set off

abhishek bhardwaj (19 Points)

30 July 2019

Can we set off the losses of current year from card games to the income from card game of current year???

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6 Replies

Rajveer Jadeja (owner) (206 Points)
Replied 30 July 2019

I think, No.

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abhishek bhardwaj (19 Points)
Replied 30 July 2019

Are you sure??

Rajveer Jadeja (owner) (206 Points)
Replied 30 July 2019

Almost. As its casual income, not under PGBP.

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 30 July 2019

1. The relevant sections relating to casual income such as winnings from a card game are sec 115BB, sec 194B and sec 70.
2. Income from card games will be considered as casual income and the same will be chargeable to tax u/s 115BB @ 30%. It is important to note that the entire winnings will be chargeable to tax @ 30%.
3. Now with respect to loss, sec 70 which deals with set-off of a loss on inter source adjustments, had not specifically dealt with a loss under the category casual income. However, an explanation was provided that loss under casual income will not be allowed to be set off against the income under the same source.
5. In the given case the winnings (and not profit as used by IT) from card games will be subject to tax @ 30 %. This income alone will be subject to tax @ 30% u/s 115BB and no other expenses or losses will be allowed to be set off against such income.
Please correct me if the above interpretation has an alternative view.