GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Profit and gains from any business
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Income of speculation business
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Profit and gains from any business other than speculation business
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None of these
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Detailed explanation-1: -2) Loss from speculative business cannot be set off against any other income. However, non-speculative business loss can be set off against income from speculative business. 3) Loss under head “Capital gains” cannot be set off against income under other heads of income.
Detailed explanation-2: -Treatment of loss from speculative business Losses from speculative business can be set off only against profits from speculative business. If the loss could not be set-off during in that year, it can be carried forward to the next 4 assessment years and set-off only against the speculative income.
Detailed explanation-3: -SEC-70: SET OFF OF LOSS UNDER THE SAME HEAD OF INCOME GENERAL RULE: The losses from one source of income can be set off against income from another source under the same head of income.