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losess u/s 71

14 June 2011

Want to know whether central excise is applicable for concerns which is engaged in packing and labeling of braids manufactured by other concerns

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 15 June 2011

Originally posted by : Ananthesh
	Want to know whether central excise is applicable for concerns which is engaged in packing and labeling of braids manufactured by other concerns

in case of bulk to retail paking in retail containers, it amounts to manufacture,

mere leveling does not amounts to manufacture, however lebeling under a brand of other excisable manufacturer who is paying duty , amounts to manufacture,

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 15 June 2011

Originally posted by : chetan
	hi What is losses u/s 71? pls explain me in details. In my director computation i seen that interest paid on loan has claim against income from house property This is right way

Section 71- SET OFF OF LOSS FROM ONE HEAD AGAINST INCOME FROM ANOTHER.

(1) Where in respect of any assessment year, the net result of the computation under any head of income, other than "Capital gains", is a loss and the assessee has no income under the head "Capital gains", he shall, subject to the provisions of this Chapter, be entitled to have the amount of such loss set off against his income, if any, assessable for that assessment year under any other head 924 .

(2) Where in respect of any assessment year, the net result of the computation under any head of income, other than "Capital gains", is a loss and the assessee has income assessable under the head "Capital gains", such loss may, subject to the provisions of this Chapter, be set off against his income, if any, assessable for that assessment year under any head of income including the head "Capital gains" (whether relating to short-term capital assets or any other capital assets).

(3) Where in respect of any assessment year, the net result of the computation under the head "Capital gains" is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to have such loss set off against income under the other head.

(4) where the net result of the computation under the head "Income from house property" is a loss, in respect of the assessment years commencing on the 1st day of April, 1995 and the 1st day of April, 1996, such loss shall be first set off under sub-sections (1) and (2) and thereafter the loss referred to in section 71A shall be set of in the relevant assessment year in accordance with the provisions of that section.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 15 June 2011

@ Chetan

Check the loan purpose, if its for development of house property then its right to claim the interest from HP income.

Viren (Chartered Accountant) (137 Points)
Replied 15 June 2011

Originally posted by : U S Sharma
	@ Chetan Check the loan purpose, if its for development of house property then its right to claim the interest from HP income.

Agree, Also Principle payment allowed as deduction U/s 80C subject to its monetory limit i.e 1 lakh.