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set off and carry forward of income

praveen (Chartered Accountant) (6971 Points)

15 October 2009

As per section 70 loss from race horses cannot be set off against income from race horses.

is it correct as in section 74A brought forward loss from race horses can be set off against income from race horses.

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7 Replies

Sunil Liladhar Kotak (Manager (F & A)) (2025 Points)
Replied 15 October 2009

Dear pls do not take otherwise but i have not seen any clause which says loss from race horses cannot be set off against income from race horses.

can u pls paste the relevant extracts of the act here to through some light on it

thanks

sunil

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Ashish M (Chartered Accountant) (2731 Points)
Replied 15 October 2009

Originally posted by :praveen
"	As per section 70 loss from race horses cannot be set off against income from race horses. is it correct as in section 74A brought forward loss from race horses can be set off against income from race horses.	"

THEIR IS NOWHERE MENTIONED ANY SUCH THING IN SEC.70.......!!!!!!!!!!!!!!

Amit (student) (27 Points)
Replied 26 December 2009

i agree with ashish......hehe

Krutesh Patel (ACA) (727 Points)
Replied 26 December 2009

Loss from Race horse can be set off from income from race horse. It can not be set off against any other income.

C.Balaji (Learner) (1867 Points)
Replied 02 January 2010

loss from race horses can only be set off against income from race horses.....

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@ CA. $ahar$h @ (Student) (338 Points)
Replied 02 January 2010

Dear Praveen,

The idea of the lawmaker is to check that the income of speculation dont get setoff from the actual income. Income from the race horses is a speculation one.Furthur, most of the time it is betted. So, It wont be safe to set it off with other incomes but it can be setoff with the same income.

Hence loss from race horses can be setoff with the income from race horses but not with any other income.

Hareesh H Sharma (Cleared IPCC..now article) (894 Points)
Replied 02 January 2010

Dear friend sec 70 says about inter source adjustment and it says that loss from the activity of owning and maintaining race horses is an exception to this sec 70..Which means u cant do inter source adjustment with the race horse loss..Hope sec 70 is clear now

And sec 74A says u can carry forward such loss for 4 years and set off against income from same activity