GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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False
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True
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Cannot be said with certainty
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Is decided by the Assessing Officer
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Detailed explanation-1: -7) Loss from business and profession cannot be set off against income chargeable to tax under the head “Salaries”. 8) Loss under the head “house property” shall be allowed to be set-off against any other head of income only to the extent of Rs. 2, 00, 000 for any assessment year.
Detailed explanation-2: -Eg. Loss from house property can be set off against salary income.
Detailed explanation-3: -Losses under the head PGBP: It can be set off against any income except salary in the year the loss is incurred. If the loss could not be set off in the year loss was incurred it can be carried forward up to 8 Assessment Years and loss will be allowed to set off against income under the head PGBP.
Detailed explanation-4: -1) No, set-off of Loss from Business and Profession is not allowed from Income from Salaries. However you can still show your Businesss loss in your Return and it can be Set-Off with any Capital Gain or Other sources of Income in the same year.
Detailed explanation-5: -The following types of business loss are not deductible from business income: Losses sustained before the business is commenced. Losses incurred in the closing down of a business. Losses incurred due to damage, destruction, etc., of capital assets.