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Set off of business loss against it refund

kavitha (studying final) (830 Points)

09 June 2012

my client received it refund in Fy 2011-12. my question is can we set off business loss against interest on it refund( income from other sources).. it refund is for the fy 2005-06.

thanks

kavitha

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8 Replies

bcshettyco (Chartered Accountant In Practice) (65 Points)
Replied 09 June 2012

Under Section 72 of the IT act in the event of carry forward of business losses, such carry forward business lossess can be set off against business gains only.

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Akash Jain (CA Final Student) (261 Points)
Replied 09 June 2012

Can't be setoff....

CA Babit Khurana (learning is my passion) (338 Points)
Replied 09 June 2012

Yes u can set off business loss against interest on income tax refund because business loss can be setoff any income except salary, because intt. on IT refund become part of other sources.

Tony John (Chartered Accountant) (6085 Points)
Replied 09 June 2012

Current year business loss can be set off with any other head except salary. But carry fwd bus loss can be set off only with business income.

shankar (CA, CS Final) (243 Points)
Replied 09 June 2012

As per section 71/72 of income tax act 1961, loss from business or profession (other than speculation or depreciation)

(1) In same Assessment Year - Any income under any head except Salaries

(2) In subsequent Assessment Year - Business Income only

carried forward only upto 8 years

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Gunjan Tulsyan (Article) (222 Points)
Replied 09 June 2012


	As per section 71/72 of income tax act 1961, loss from business or profession (other than speculation or depreciation) (1) In same Assessment Year - Any income under any head except Salaries (2) In subsequent Assessment Year - Business Income only carried forward only upto 8 years