DT - Set off & Carry Forward

Question 1

Inter Source Set off Exceptions

Answer 1

1. Speculative loss only from Speculative profit
2. Long Term Capital Loss only from Long Term Capital Gain
   3.Section 35AD Business loss only from Section 35AD Business profit
   4.Loss from activity of owning & maintaining race horses from Profit from activity of owning & maintaining race horses

Question 2

Inter Head Set off Exceptions

Answer 2

1.Loss from Business & Profession cannot be set off from Salary
2.Speculative , Section 35AD , Activity of owning & maintaining race horses losses cannot be set off from any other head income
3.STCL/LTCL cannot be set off from any other head income : STCL —> STCG/LTCG
LTCL —> LTCG
4.Loss from HP can be set off from other head of Income only upto Rs 2 Lakh

Question 3

Period of Carry Forward of Losses

Answer 3

1. HP Loss - 8AY
   2.Business Loss - 8AY
   3.Speculation Business Loss - 4AY
2. Section 35AD Loss - Indefinite
   5.STCL/LTCL - 8AY
   6.Loss from activity of owning & maintaining race horses - 4AY