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Loss form Business

Rajan Gumnani (Service) (114 Points)

09 October 2007

Can I set off my loss from business against my salary income.

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siddharth (C.A.) (175 Points)
Replied 09 October 2007

Hi Rajan,
NO u cannot set off loss from business against salary income.

Refer Section 71(2A) which states that "Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment year, the net result of the computation under the head “Profits and gains of business or profession” is a loss and the assessee has income assessable under the head “Salaries”, the assessee shall not be entitled to have such loss set off against such income"