SET OFF AND CARRY FORWARD OF LOSSES SET OFF AND CARRY FORWARD OF LOSSES

SET-OFF AND CARRY FORWARD OF LOSSES

Section 70 INTRA HEAD ADJUSTMENT

GENERAL RULE :- within the particular head of income, loss from one source can be setoff against the income from any other

source.

EXCEPTIONS:-             A) losses of speculative business only against income from speculative business.

B)   losses of business u/s 35 AD only against income from business u/s 35 AD.

C)   losses of OMRH only against income from OMRH

D)   LTCL cannot be set off against STCG.

 

Section 71 INTER HEAD ADJUSTMENT

GENERAL RULE :- there is a loss under any head of income it can be set off against income under any other head

EXCEPTIONS :- A) losses of speculative business only against income from speculative business.

B)    losses of business u/s 35 AD only against income from business u/s 35 AD.

C)    losses of OMRH only against income from OMRH

D)    PGBP losses cannot be set off against salary income.

E)    CAPITAL LOSSES cannot be set off against any other head

 

 

INCOME HEAD

INTRA HEAD

INTER HEAD

CARRY FORWARD

HOUSE PROPERTY

Allowed

Allowed             except            casual income ( max. Rs.2 lacs)

8 years ( only against house property)

NORMAL BUSINESS

Allowed assessee.

to any other

business of

Allowed             except income and salary.

casual

8 years ( only against income u/h PGBP)

SPECULATIVE BUSINESS

Allowed business.

only         against

speculative

Not allowed

4 years ( only against speculative business.)

BUSINESS U/S 35 AD

Allowed only against business u/s 35 AD

Not allowed

Unlimited time ( only against 35 AD.)

CAPITAL GAIN

STCL LTCL

STCG LTCG

 

Not allowed

STCL                             STCG

 

LTCL                             LTCG

( 8 years)

CASUAL LOSS

Not allowed

Not allowed

Not allowed

LOSS OMRH

FROM

Allowed only against OMRH

Not allowed

4       years.         (Allowed against OMRH

only

OTHER LOSSES

Allowed except casual income

Allowed

Not allowed



Watch Demo for Taxation by Prof. Vinit Kumar Sir for CA/CMA Inter: https://www.conceptonlineclasses.com/demovideos

Visit Website: https://www.conceptonlineclasses.com/

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