mr hussey has
1. business loss rs 130000
2. salary 240000
3. speculation gain 110000
total income for taxability?
Set off
Kajal Khetwani (236 Points)
02 June 2017
11 Replies
Poltu Ghosh
(Job)
(1865 Points)
Replied 02 June 2017
I beg to differ. Total Income is Rs 260000. Speculative gain can be set off any business loss provided conditions of section 71 is met
Kajal Khetwani
(236 Points)
Replied 02 June 2017
it is not provided in question
that the business loss is specified business loss or just business loss
that the business loss is specified business loss or just business loss
Sunil Sharma
(CMA & CS)
(584 Points)
Replied 02 June 2017
There will not be any tax liability as it's below the exemption limit and the Total income for computation would be 2.4l
20000 will be carry forward after setting off the Business loss with speculative gain and as said by Mr.Gosh if satisfy sec 71
20000 will be carry forward after setting off the Business loss with speculative gain and as said by Mr.Gosh if satisfy sec 71
Poltu Ghosh
(Job)
(1865 Points)
Replied 02 June 2017
Then assumption on the nature of loss is to be taken. Speculative loss is of special nature whereas business loss is of General nature. If specific nature is not mentioned it has to be assumed as General business loss.
Poltu Ghosh
(Job)
(1865 Points)
Replied 02 June 2017
Yes it was my computation mistake. Total income will be Rs. 240000 and Rs 20000 will be carried forward. Thanks for correction, Mr. Sunil.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 02 June 2017
Also speculation gain added in income
Sunil Sharma
(CMA & CS)
(584 Points)
Replied 03 June 2017
| Originally posted by : Rashmi Gandhi | ||
 |
Also speculation gain added in income |  |
Ms.Rashmi Gandhi , Speculation Income would be added and sett off against the Business Loss and only the final Numbers are to be taken for the considersation. In this case INR 20,000 would again be carry forward as Business Loss cannot be set off against the salary Income so only the salary part would be coming and there will not be any tax liability as that being under the Basic exemption limit.
Regards,
Sunil Sharma
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 03 June 2017
How normal Loss set off from Speculation Gain
Sunil Sharma
(CMA & CS)
(584 Points)
Replied 03 June 2017
Kindly refer the file attached which are the FAQ's issued by the Income Tax Authorities and refer the Point Number 1 under the head
* Restrictions to be kept in mind while making intra-head adjustment of loss
also find the following link for the same
https://www.incometaxindia.gov.in/Tutorials/21-%20MCQ%20set%20off%20and%20carry%20frwrd.pdf
Hope this would clarify..!!
Regards,
Sunil Sharma
Attached File : 928156 20170603155829 21 mcq set off and carry frwrd.pdf downloaded: 128 times
Poltu Ghosh
(Job)
(1865 Points)
Replied 03 June 2017
Please read section 71 and section 73. All the confusions will be cleared. In nutshell, there is no significance of speculative and non speculative income. Only speculative business loss has special treatment in income tax. Speculative business loss can be set off only against speculative business income. This is the only implication of speculative loss.
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
