5. Set Off Or Carry Forward & Set Off Losses

Question 1

Intra head adjustment - salary

Answer 1

Not applicable

Question 2

Intra head adjustment - House property

Answer 2

No restriction

Question 3

Intra head adjustment - PGBP

Answer 3

• Normal business loss- no restriction
• loss from speculation business - profit from speculation business
• loss from specified business u/s 35 AD - profit from special business u/s 35 AD

Question 4

Intra head adjustment - Capital Gains

Answer 4

• STCL - STCG/LTCG
• LTCL- LTCG

Question 5

Intra head adjustment - Income from other sources

Answer 5

• loss of owning & maintaining race horses - income from owning & maintaining race horses
• others - no restriction

Question 6

Inter head adjustment - salary

Answer 6

Not applicable

Question 7

Inter head adjustment - House property

Answer 7

No restriction upto ₹ 2,00,000

Question 8

Inter head adjustment - PGBP

Answer 8

• Normal business loss - and head other than salaries
• loss from speculative/ specified business- not allowed

Question 9

Inter head adjustment - capital gains

Answer 9

Not allowed

Question 10

Inter head adjustment - IFOS

Answer 10

• race horse - not allowed
• others - No restrictions

Question 11

Time period - interhead benefits

Answer 11

Generally, interhead benefit is allowed only in the same year of loss and not allowed after being carried forward

Exception: unabsobed depreciation

Question 12

Time period - unabsorbed depreciation

Answer 12

Section: 32(2)

Set off against: Any head other than salaries

Time period: indefinite period

Question 13

Time period - Loss from HP

Answer 13

Section: 71B

Set off against: Income from HP

Time period: 8 Yrs

Question 14

Time period - Normal PGBP loss

Answer 14

Section: 72

Set off against: PGBP

Time period: 8 yrs

Question 15

Time period - Loss from speculation business

Answer 15

Section: 73

Set off against: Income from speculation business

Time period: 4 yrs

Question 16

Time period - Loss from specified business u/s 35AD

Answer 16

Section: 73A

Set off against: Profit from specified business u/s 35AD

Time period: infinite period

Question 17

Time period - Capital gains

Answer 17

Section: 74

Set off against:
LTCL- LTCG
STCL- STCG

Time period: 8 Yrs

Question 18

Time period- Loss from owning anc maintaining race horses

Answer 18

Section: 74A

Set off against: Income from owning anc maintaining race horses

Time period: 4 Yrs

Question 19

Loss from other sources

Answer 19

Cannot be carry forward

Question 20

Loss from winnings

Answer 20

Cannot be set off or carry forward

Question 21

Against income of winnings

Answer 21

No expense & no loss is allowed to be set off

Question 22

Against unexplained credit

Answer 22

(Taxable)

No loss is allowed to be set off

Question 23

If income is exempt

Answer 23

Ignore the losses relating to it

Question 24

Section 80

Answer 24

All losses other than loss of HP and unabsorbed depreciation can be carry forward only if return is filed within due date

Question 25

Even if business is closed, loss from such business

Answer 25

Can still be carry forward till the time limit

Question 26

Order

Answer 26

PGBP Income -> current yr depreciation-> current yr PGBP loss -> b/f PGBP loss -> b/f unabsorbed depreciation