www.Aaptaxlaw.com
 
 
 

What is the treatment of Losses in speculation business? Section 73 of Income Tax Act 1961

Losses in speculation business is defined under section 73 of Income Tax Act 1961. Provision under this Section is:

Section 73 of Income Tax Act "Losses in speculation business"

Section 73. (1) Any loss, computed in respect of a speculation business carried on by the assessee, shall not be set off except against profits and gains, if any, of another speculation business.

(2) Where for any assessment year any loss computed in respect of a speculation business has not been wholly set off under sub-section (1), so much of the loss as is not so set off or the whole loss where the assessee had no income from any other speculation business, shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and-

 

(i) it shall be set off against the profits and gains, if any, of any speculation business carried on by him assessable for that assessment year; and

(ii) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following assessment year and so on.

(3) In respect of allowance on account of depreciation or capital expenditure on scientific research, the provisions of sub-section (2) of section 72 shall apply in relation to speculation business as they apply in relation to any other business.

(4) No loss shall be carried forward under this section for more than four assessment years immediately succeeding the assessment year for which the loss was first computed.

Explanation.-Where any part of the business of a company (other than a company whose gross total income consists mainly of income which is chargeable under the heads "Interest on securities", "Income from house property", "Capital gains" and "Income from other sources", or a company 13[the principal business of which is the business of trading in shares or banking] or the granting of loans and advances) consists in the purchase and sale of shares of other companies, such company shall, for the purposes of this section, be deemed to be carrying on a speculation business to the extent to which the business consists of the purchase and sale of such shares.

Income Tax Act 1961

What is Set off of loss from one head against income from another?. What is Transitional provisions for set off of loss under the head "Income from house property"? Section 71 and 71A of Income Tax Act 1961

What is Carry forward and set off of loss from house property? Section 71B of Income Tax Act 1961

What is Carry forward and set off of business losses? Section 72 of Income Tax Act 1961

What are the Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc? Section 72A of Income Tax Act 1961

What are the Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation of banking company in certain cases? Section 72AA of Income Tax Act 1961

What are the Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in business reorganisation of co-operative banks? Section 72AB of Income Tax Act 1961

What is the treatment of Losses in speculation business? Section 73 of Income Tax Act 1961

What is Carry forward and set off of losses by specified business? What is Losses under the head "Capital gains? Section 73A and 74 of Income Tax Act 1961

What is Losses from certain specified sources falling under the head "Income from other sources"? Section 74A of Income Tax Act 1961

What is Losses of firms? How to Carry forward and set off of losses in case of change in constitution of firm or on succession? Section 75 and 78 of Income Tax Act 1961

What is Carry forward and set off of losses in the case of certain companies Submission of return for losses? Section 79 and 80 of Income Tax Act 1961

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap