Setoff of loss of other sources from business income

Mukesh Khandelwal (Querist) 21 January 2013 This query is : Resolved
One of my clients has loss from other sources [interest paid for loans and liabilities] and have business income [interest from partnership firm and share of profit from partnership firm. Can he set off the loss from other sources to income from business?

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ajay sethi (Expert) 21 January 2013
raise this query in CA club india .
in alternative contact your chartered accountant

Mukesh Khandelwal (Querist) 21 January 2013
ok sir so so thanks

prabhakar singh (Expert) 21 January 2013
If the amount of debt on which interest is being paid by your client has been invested as capital in the partnership then interest earned by your client from partnership can be adjusted towards the cost of capital taken on loan.

Mukesh Khandelwal (Querist) 22 January 2013
Thanks a lot

Raj Kumar Makkad (Expert) 24 January 2013
Nothing to add more in the already iven advice.

R.V.RAO (Expert) 07 March 2014
under section 71/72 of IT act,loss from business or Profession (other than speculation or depreciation) can be set off against any income under any head except Salaries, in same assessment year.

or
it can be set off against business Income only in susequent asst.year,and
can be carried forward for 8 years(subject to sec 78 and 94(8)

source: http: // wirc- icai.org/ wirc_referencer/incometax

Guest (Expert) 10 December 2014
Well Advised

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