{"id":24189,"date":"2023-05-06T16:41:26","date_gmt":"2023-05-06T11:11:26","guid":{"rendered":"https:\/\/gstguntur.com\/?p=24189"},"modified":"2023-05-06T16:47:29","modified_gmt":"2023-05-06T11:17:29","slug":"aggregation-of-income-set-off-and-carry-forward-of-losses","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/aggregation-of-income-set-off-and-carry-forward-of-losses\/","title":{"rendered":"Aggregation of Income, Set-off and Carry Forward of Losses \u2013 CA Inter Tax Question Bank"},"content":{"rendered":"

Aggregation of Income, Set-off and Carry Forward of Losses \u2013 CA Inter Tax Question Bank<\/a>\u00a0is designed strictly as per the latest syllabus and exam pattern.<\/p>\n

Aggregation of Income, Set-off and Carry Forward of Losses \u2013 CA Inter Tax Question Bank<\/h2>\n

Question 1.
\nAnswer the following :
\nDiscuss briefly on carry forward and set off of losses in the case of change in Constitution of Firm or Succession. (Nov 2009, 3 marks)
\nAnswer :
\nCarry forward and set off of losses in cases of change in constitution of firm or on succession [Section 78]
\n(i) Where there is a change in the constitution of firm, so much of the loss proportionate to the share of a retired or deceased partner remaining unabsorbed, shall not be allowed to be carried forward by the firm.<\/p>\n

(ii) Where any person carrying on any business or profession has been succeeded in such capacity by another person otherwise than by inheritance, such other person shall not be allowed to carry forward and set off against his income, any loss incurred by the predecessor.<\/p>\n

(iii) Where there is a succession by inheritance, the legal heirs (assessable as BOI) are entitled to set off the business loss of the predecessor. Such carry forward and set off is possible even if the legal heirs constitute themselves as partnership firm. In such a case, the firm can carry forward and set off the business loss of the predecessor.<\/p>\n

\"Aggregation<\/p>\n

Question 2.
\n2008 – Nov [4] (a)
\nMr. P, a resident individual, furnishes the following particulars of his income and other details for the previous year 2020-21 :
\n\"Aggregation
\nCompute the gross total income of Mr. P, for the Assessment year 2021 -22 and amount of loss that can or cannot be carried forward. (Nov 2008, 6 marks)
\nAnswer:
\nGross Total income of Mr. P for the Assessment year 2021-22
\n\"Aggregation<\/p>\n

Note:<\/p>\n

    \n
  1. In case of income from business, depreciable allowance is to be set off against income from business and then unabsorbed brought forward depreciation is to be set off.<\/li>\n
  2. Short term capital loss can be set off against short term capital gain or long term capital gain.<\/li>\n
  3. Loss on maintenance of horse race can be set off against profits from maintenance of horse race.
    \nThe amount of loss that can be C\/f
    \nLoss on maintenance of horse race – 9,000
    \nLoss from speculative business – 4,000
    \nLoss to be carried forward – 13,000<\/li>\n<\/ol>\n

    \"Aggregation<\/p>\n

    Question 3.
    \nMs. Geeta is a resident individual, provides the following details of her income\/losses for the year ended 31.3.2021 :
    \n(i) Salary received as a partner from a partnership firm \u20b9 7,50,000.
    \n(ii) Loss on sale of shares listed in BSE \u20b9 3,00,000. Shares were held for 15 months and STT paid on sale.
    \n(iii) Long-term capital gain on sale of land \u20b9 5,00,000.
    \n(iv) \u20b9 51,000 received in cash from friends in party.
    \n(v) \u20b9 55,000 received towards dividend on listed equity shares of domestic companies.
    \n(vi) Brought forward business loss of assessment year 2017-18 \u20b9 12,50,000. The return for assessment year 2017-18 was filed in time.<\/p>\n

    Compute gross total income of Ms. Geeta for the assessment year 2021 -22 and ascertain the amount of loss that can be carried forward. (May 2009, 8 marks)
    \nAnswer:
    \nComputation of gross total income of Ms. Geeta:
    \n\"Aggregation
    \n(a) Brought forward business loss of assessment year 2017-18 of \u20b9 5,00,000 (the unadjusted amount) will be carried forward.
    \n(b) In Budget 2018, with the withdrawal of Sec 10(38), there is a parallel introduction of Section 112A to tax LTCG on sale of
    \n(a) Equity shares,
    \n(b) Units of equity oriented funds or
    \n(c) Units if business trusts
    \nAt a concessional rate of 10% on the gains in excess of \u20b9 1 lakh without providing the benefits of indexation or the benefit of computation of capital gains in foreign currency in the case of non-residents.<\/p>\n

    \"Aggregation<\/p>\n

    Question 4.
    \nMr. Rajat submits the following information for the financial year ending 31st<\/sup> March, 2021. He desires that you should : (Nov 2009, 10 marks)
    \n(a) Compute the total Income and
    \n(b) Ascertain the amount of losses that can be carried forward.
    \n\"Aggregation
    \nAnswer:
    \nComputation of Total Income
    \n\"Aggregation
    \nLong-term capital loss of \u20b9 35,000 will be carried forward as per the provisions of Sec. 70.<\/p>\n

    Working Notes :<\/p>\n

      \n
    1. The loss from House Property II will be set off against income from House Property.<\/li>\n
    2. As all the three business carried on by Mr. Rajat are non-speculative, mutual set off of losses from one business against profit from another business is possible, [current years business income = – (40,000) + \u20b9 35,000 + \u20b9 1,00,000 = \u20b9 95,000] [brought forward loss = \u20b9 95,000 + \u20b9 50,000 = \u20b9 1,45,000 ] loss of \u20b9 50,000 will be carried forward.<\/li>\n
    3. Long-term capital loss can only be set off against long-term capital gain.<\/li>\n<\/ol>\n

      \"Aggregation<\/p>\n

      Question 5.
      \nMr. Sohan submits the following details of his income for the assessment year 2021-22.
      \nIncome from salary – 3,00,000.00
      \nLoss from let out house property – 40,000.00
      \nIncome from sugar business – 50,000.00
      \nLoss from iron ore business b\/f – 1,20,000.00
      \n(discontinued in 2014-15)
      \nShort term capital loss – 60,000.00
      \nLong term capital gain – 40,000.00
      \nDividend – 5,000.00
      \nIncome received from lottery winning (Gross) – 50,000.00
      \nWinning in card games – 6,000.00
      \nAgricultural income – 20,000.00
      \nLong term capital gain frortn shares (STT paid) – 10,000.00
      \nShort term capital loss under section 111A – 10,000.00
      \nBank interest – 5,000.00
      \nCalculate gross total income and losses to be carried forward. (Nov 2010, 5 marks)
      \nAnswer:
      \nComputation of Gross Total Income of Mr. Sohan for the Assessment year 2021-22
      \n\"Aggregation
      \nNote 1: B\/f business loss can only be set off from current year business Income and inter head set off is not possible.
      \nNote 2: For set off of b\/f business loss continuance of business is not necessary.
      \nNote 3: Agriculture income is exempt u\/s 10(1), however it shall be considered only for rate purposes.
      \nNote 4: It is presumed that loss from iron – ore business relates to P.Y. 2008 – 09, the year in which the business was discontinued.
      \n\"Aggregation<\/p>\n

      \"Aggregation<\/p>\n

      Question 6.
      \nThe following are the details relating to Mr. Srivatsan, a resident Indian. aged 57, relating to the year ended 31-3-2021.
      \n\"Aggregation
      \nCompute the total income and show the items eligible for carry forward. (May 2011, 8 marks)
      \nAnswer:
      \nCalculation of total income of Mr. Srivatsan for the A.Y. 2021 -22:
      \n\"Aggregation<\/p>\n

      Notes:
      \n(i) Business loss cannot be set off against salary income. However, the balance business loss of \u20b9 2,10,000 (\u20b9 2,40,000 – \u20b9 30,000 set-off against income from speculation business) can be set-off against long-term capital gains of \u20b9 2,40,000 from sale of urban land available after set off from long term capital loss on sale of shares. Consequently, the taxable long-term capital gains would be \u20b9 34,000.<\/p>\n

      (ii) Loss from specified business covered by Section 35AD can be set-off only against profits and gains of any other specified business. Therefore, such loss cannot be set off against any other income. The unabsorbed loss has to be carried forward for set-off against profits and gains of any specified business in the following year.<\/p>\n

      (iii) Loss from card games can neither be set off against any other income, nor can it be carried forward.<\/p>\n

      (iv) In Budget 2018, with the withdrawal of Sec 10(38), there is a parallel introduction of Section 112A to tax LTCG on sale of
      \n(a) Equity shares,
      \n(b) Units of equity oriented funds or
      \n(c) Units if business trusts
      \nAt a concessional rate of 10% on the gains in excess of \u20b9 1 lakh without providing .the benefits of indexation or the benefit of computation of capital gains in foreign currency in the case of non-residents.<\/p>\n

      (v) Income from betting is chargeable at a flat rate of 30% under Section 115BB and no expenditure or allowance can be allowed as deduction from such income, nor can any loss be set-off against such income.<\/p>\n

      (vi) For providing Deduction, gross total income has to be reduced by the amount of long-term capital gains and casual income.
      \nHence, the deduction under Section 80C in respect of life insurance premium paid has to be restricted to \u20b9 30,000 [i.e., Gross Total Income of \u20b9 1,05,000 – \u20b9 3,40,000 (LTCG) – \u20b9 45,000 (Casual income)].<\/p>\n

      \"Aggregation<\/p>\n

      Question 7.
      \nFrom the following information of Mr. Mohit for the financial year 2020-21 you are required to compute his total income for the financial year 2020-21 and ascertain the amount of losses which will be carried forward to next year. (May 2013, 8 marks)
      \n\"Aggregation
      \nAnswer:
      \nComputation of total income of Mr. Mohit for the A.Y. 2021-22
      \n\"Aggregation
      \n\"Aggregation<\/p>\n

      Working Notes:<\/p>\n

        \n
      1. The share of profit from firm of \u20b9 16,550 is exempt under Section 10(2A) in the hands of the partner, Mr. Mohit.<\/li>\n
      2. Long-term capital loss cannot be set-off against short-term capital gains. Hence, it has to be carried forward to the next year to be set-off against long-term capital gains of that year. It can be carried forward for a maximum of 8 assessment years.<\/li>\n<\/ol>\n

        Note: The above solution has been worked out according to the following assumptions:<\/p>\n

          \n
        1. The current year loss of \u20b9 38,000 in respect of House No. 2 is the computed loss after deduction of municipal tax, interest and 30% of Net Annual Value.<\/li>\n
        2. Life insurance premium paid is fully allowable as deduction under section 80C on the assumption that the same is within the limit of 10% or 20% of actual capital sum assured, as the case may be (20% if the policy is issued before 1.04.2012 and 10% if the policy is issued on or after 1.04.2012).<\/li>\n<\/ol>\n

          \"Aggregation<\/p>\n

          Question 8.
          \nMr. Garg, a resident individual, furnishes the following particulars of his income and other details for the previous year 2020-21.
          \n\"Aggregation
          \nThe other details of unabsorbed depreciation and brought forward losses pertaining to Assessment Year 2021-22 are as follows:
          \n\"Aggregation
          \nCompute the Gross total income of Mr. Garg for the Assessment Year 2021 – 22 and the amount of loss, if any, that can be carried forward, or not. (May 2014. 4 marks)
          \nAnswer:
          \nComputation of Gross total Income of Mr Garg for the AY 2021-22
          \n\"Aggregation
          \nNotes:<\/p>\n

            \n
          1. Loss from speculative business of \u20b9 22,000 relating to AY 2020-21 shall be c\/f.<\/li>\n
          2. Loss from maintenance of race horses of \u20b9 15,000 relating to AY 2020 – 21 shall be c\/f.<\/li>\n
          3. Loss from gambling of \u20b9 9,100 can neither be set off nor carried forward.<\/li>\n<\/ol>\n

            \"Aggregation<\/p>\n

            Question 9.
            \nMr. Aditya furnishes the following details for the year ended 31-03-2020:
            \n\"Aggregation
            \nFollowing are the brought forward losses:
            \n(1) Losses from owning and maintaining of race horses pertaining to A.Y. 2020-21 \u20b9 2,000.
            \n(2) Brought forward loss from trading business \u20b9 5,000 relating to AY. 2017 -18.
            \nCompute the total income of Mr. Aditya and show the items eligible for carry forward. (May 2016, 8 marks)
            \nAnswer:
            \nAssessee: Mr. Aditya
            \nAssessment year: 2021-2022<\/p>\n

            Previous year: 2020-2021 Computation of Total Income
            \n\"Aggregation
            \nNote: Long Term Capital Loss on which STT is paid is not available for set off upto \u20b9 1 Lacs from AY 2021-22.<\/p>\n

            II. Items Eligible for Carry Forward
            \n\"Aggregation<\/p>\n

            \"Aggregation<\/p>\n

            Question 10.
            \nMr. Shyam, a resident of Chandigarh, provides the following information for the financial year 2020-21:
            \n\"Aggregation
            \nCompute the Gross Total Income of Mr. Shyam for the Assessment year 2021-22 and any other item of expense or loss eligible for carry forward. (May 2017, 4 marks)
            \nAnswer:
            \nComputation of Gross Total Income
            \nIncome under head PGBP .
            \n\"Aggregation<\/p>\n

            Note:<\/p>\n

              \n
            1. Loss from Gambling cannot be set off.<\/li>\n
            2. Loss on maintenance of race horse shall be carried forward.<\/li>\n
            3. Brought forward speculation loss shall be adjusted from current year profit and balance carried forward.<\/li>\n<\/ol>\n

              \"Aggregation<\/p>\n

              Question 11.
              \nAnswer the following :
              \nMr. Prakash furnishes you the following details in respect of the Financial Year 2020-21.
              \n(i) Loss from the business carried on by him as a proprietor: \u20b9 11,20,000 0
              \n(ii) Deduction u\/s 80 IB : \u20b9 5 50,000 (*)
              \n(iii) Unabsorbed Depreciation : \u20b9 4,80,000 (*)
              \n(iv) Loss from House property : \u20b9 2,50,000 (*)
              \n(*) Computed as per the Income-Tax Act, 1961
              \nThe due date for filing the return for Mr. Prakash was 31st<\/sup> July, 2021 under section 139(1). However, he filed the return on 29.9.2021. Discuss with reference to the relevant provisions of Income-Tax Act, 1961 if the losses and deductions could be carried forward\/claimed by Mr. Prakash. (Nov 2017, 5 marks)
              \nAnswer:
              \nMr. Prakash has furnished his return of income for A.Y. 2021-22 on 29.9.2020, i.e., after the due date specified under Section 139(1), 31st<\/sup> July 2021. Hence, the return is a belated return under Section 139(4).<\/p>\n

              As per section 80 read with Section 139(3), specified losses, which have not been determined in pursuance of a return of loss under Section 139(3) filed within the time specified in Section 139(1), cannot be carried forward to the subsequent year for set-off against income of that year. The specified losses include, inter alia, business loss to be carried forward under section 72 but does not include loss from house property and unabsorbed depreciation to be carried forward under Section 71B and Section 32(2), respectively.<\/p>\n

              Accordingly, business loss of \u20b9 11,20,000 of Mr. Prakash for A.Y.2021-22, not determined in pursuance of a return of loss for that year, filed within the time specified in Section 139(1), cannot be carried forward to A.Y.2022-23. However, the loss of \u20b9 2,50,000 from house property and unabsorbed depreciation of \u20b9 4,80,000 pertaining to A.Y.2021 -22, can be carried forward to A.Y.2022-23 for set-off, even though Mr. Prakash has filed the return of loss for A.Y.2021 -22 belatedly.<\/p>\n

              Further, as per Section 80AC, furnishing of return of income on or before the due date specified under Section 139(1) is mandatory for claiming deduction under, inter alia, Section 80-IB.<\/p>\n

              Hence, Mr. Prakash cannot claim deduction of \u20b9 5,50,000 under Section 80-IB for A.Y.2021 -22, since he has not furnished his return of income on or before the due date specified under Section 139(1) for that year.<\/p>\n

              \"Aggregation<\/p>\n

              Question 12.
              \nAnswer of the following.
              \n(a) Mr. Rakesh Gupta has derived the following income\/loss, as computed below, for the previous year 2020-21:<\/p>\n

              Loss from let out house property – 2,50,000
              \nLoss from non-speculation business – 3,20,000
              \nIncome from speculation business – 12,45,000
              \nLoss from specified business covered u\/s 35 AD – 4,10,000
              \nWinnings from lotteries (Gross) – 1,50,000
              \nWinnings from beatings – 90,000
              \nLoss from card games – 3,40,000<\/p>\n

              You are required to compute the total income of the assessee for the assessment year 2021 -22, showing clearly the manner of set-off and the items eligible for carry forward. The return of income has been filed on 30-7-2021. (Nov 2018, 5 marks)
              \nAnswer:
              \nComputation of total income of Mr. Rakesh Gupta for the A.Y. 2021-22
              \n\"Aggregation<\/p>\n

              \"Aggregation<\/p>\n

              Losses to be carried forward to A.Y. 2022-23.<\/p>\n\n\n\n\n\n\n
              Particulars<\/td>\n\u20b9<\/td>\n<\/tr>\n
              Loss from house property (\u20b9 2,50,000 – \u20b9 2,00,000)<\/p>\n

              As per section 71 (3A), loss from house property can be set-off against any other head of income to the extent of \u20b9 2,00,000 only. As per section 71 (BA), balance loss not set-off can be carried forward to the next year for set-off against income from house property of that year2<\/sup><\/td>\n

              		50,000<\/td>\n<\/tr>\n
              Loss from specified business covered by section 35AD<\/p>\n

              Loss from specified business under section 35AD can be set-off only against profits of any other specified business. As per section 73A(2), if loss cannot be so set-off, the same has to be carried forward to the subsequent year for set off against income from specified business, if any, in that year. Since the return has been filed before the due date, such loss can be carried forward.<\/td>\n

              		4,10,000<\/td>\n<\/tr>\n
              Loss from card games<\/p>\n

              Loss from card games can neither be set off against any other income, nor can it be carried forward.<\/td>\n

              		<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

              Note: It has been assumed that the amount \u20b9 90,000 given in the question represents gross winnings from betting. Accordingly, the total income has been computed. However, in case \u20b9 90,000 considered as net amount and grossed up the same, the gross winnings from betting would be \u20b9 1,28,571 [\u20b9 90,000 \u00d7 100\/70]. The total income would be \u20b9 10,03,570 (rounded off).<\/p>\n

              \"Aggregation<\/p>\n

              Question 13.
              \nFollowing are the details of incomes \/losses of Mr. Rishi for the F.Y. 2020-21:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
              (Figures in brackets represents losses)<\/td>\n<\/td>\n<\/tr>\n
              Taxable salary income (computed)<\/td>\n3,60,000<\/td>\n<\/tr>\n
              Taxable income from house property (computed)<\/td>\n<\/td>\n<\/tr>\n
              – from rented house property X<\/td>\n1,20,000<\/td>\n<\/tr>\n
              – from rented house property Y<\/td>\n(3,40,000)<\/td>\n<\/tr>\n
              Taxable profit from business (computed)<\/td>\n<\/td>\n<\/tr>\n
              – business P<\/td>\n2,30,000<\/td>\n<\/tr>\n
              – business Q<\/td>\n(12,000)<\/td>\n<\/tr>\n
              – business R (speculative business)<\/td>\n15,000<\/td>\n<\/tr>\n
              – business T (speculative business)<\/td>\n(25,000)<\/td>\n<\/tr>\n
              Taxable Income from other sources:<\/td>\n<\/td>\n<\/tr>\n
              – from card games<\/td>\n16,000<\/td>\n<\/tr>\n
              – from owning & maintenance of race horses<\/td>\n(7,000)<\/td>\n<\/tr>\n
              – interest on securities<\/td>\n5,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

              You are requird to determine the Gross total income of Mr. Rishi for Assessment Year 2021-22. (Nov 2019, 5 marks)
              \nAnswer:
              \nComputation of Gross total Income of Mr. Rishi for AY 2021-22
              \n\"Aggregation<\/p>\n

              \"Aggregation<\/p>\n

              Question 14.
              \nMs. Pooja a resident indMdual provides the following information of her income\/losses for the year ended on 31st<\/sup> March, 2021 :<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
              S.No.<\/td>\nParticulars<\/td>\n(\u20b9)<\/td>\n<\/tr>\n
              1<\/td>\nIncome from salary (Computed)<\/td>\n2,20,000<\/td>\n<\/tr>\n
              2<\/td>\nIncome from House Property (let out) (Net Annual Value)<\/td>\n1,50,000<\/td>\n<\/tr>\n
              3<\/td>\nShare of loss from firm in which she is partner<\/td>\n10,000<\/td>\n<\/tr>\n
              4<\/td>\nLoss from specified business covered under section 35 AD<\/td>\n20,000<\/td>\n<\/tr>\n
              5<\/td>\nIncome from textile business before adjusting the following items :<\/p>\n

              (a)\u00a0\u00a0 Current year depreciation<\/p>\n

              (b)\u00a0\u00a0 Unabsorbed depreciation of earlier year<\/p>\n

              (c)\u00a0\u00a0 Brought forward loss of textile business of the A.Y. 2019-20<\/td>\n

              		3,00,000<\/p>\n

              60,000<\/p>\n

              2,25,000<\/p>\n

              90,000<\/td>\n<\/tr>\n

              6<\/td>\nLong-term capital gain on sale of debentures<\/td>\n75,000<\/td>\n<\/tr>\n
              7<\/td>\nLong-term capital loss on sale of equity shares (STT not paid)<\/td>\n1,00,000<\/td>\n<\/tr>\n
              8<\/td>\nLong-term capital gain on sale of equity shares listed in recognized stock exchange (STT paid at the time of acquisition and sale)<\/td>\n1,50,000<\/td>\n<\/tr>\n
              9<\/td>\nDividend from units of UTI<\/td>\n5,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

              During the previous year 2020-21, Ms. Pooja has repaid \u20b9 5,25,000 towards housing loan from a scheduled bank. Out of this \u20b9 3,16,000 was towards payment of interest and rest towards principal.<\/p>\n

              Compute the gross total income of Ms. Pooja and ascertain the amount of loss that can be carried forward. Ms. Pooja has always filed her return within the due date specified under section 139(1) of the Income-tax Act, 1961. (Nov 2020, 8 marks)<\/p>\n

              \"Aggregation<\/p>\n

              Multiple Choice Question<\/strong><\/p>\n

              Question 1.
              \nLoss of a property can be set off in the current year from the income of-
              \n(a) Other house property
              \n(b) Firstly income of house property and then other heads
              \n(c) Other head
              \n(d) None of above
              \nAnswer:
              \n(c) Other head<\/p>\n

              Question 2.
              \nChoose the correct answer from the following\u2014
              \n(a) Loss from business of owing and maintaining race horses can be set off against any income.
              \n(b) Loss from lottery, card games etc. can be set off against any income.
              \n(c) Speculation business loss can be set off only against speculation business income.
              \n(d) Long-term capital loss can be set off against long-term or short-term capital loss.
              \nAnswer:
              \n(c) Speculation business loss can be set off only against speculation business income.<\/p>\n

              \"Aggregation<\/p>\n

              Question 3.
              \nLoss arising under the head capital gain cannot be set-off against\u2014
              \n(a) Income under the head salaries.
              \n(b) Income under the head “Profits and gains of business or profession”.
              \n(c) Income under the head house property.
              \n(d) All of the above.
              \nAnswer:
              \n(d) All of the above.<\/p>\n

              Question 4.
              \nA business loss can be carried forward and set off in the subsequent assessment year when the business on account of which this loss has arisen:
              \n(a) is continued in the assessment year in which the such loss is set off
              \n(b) is continued or not
              \n(c) is continued for any part of the previous year
              \n(d) None of the above
              \nAnswer:
              \n(b) is continued or not<\/p>\n

              \"Aggregation<\/p>\n

              Question 5.
              \nLoss on account of owing & maintaining the race horse can be carried forward:
              \n(a) For 8 years
              \n(b) For 4 years
              \n(c) Indefinitely
              \n(d) 6 years
              \nAnswer:
              \n(b) For 4 years<\/p>\n

              Question 6.
              \nLoss from speculation business can be set off from\u2014
              \n(a) Profit of speculation business
              \n(b) Gains from gambling
              \n(c) Lottery price
              \n(d) Any of above
              \nAnswer:
              \n(a) Profit of speculation business<\/p>\n

              \"Aggregation<\/p>\n

              Question 7.
              \nBrought forward losses (except1 speculation business loss)under Profits & Gains of Business or Profession can be set-off against\u2014
              \n(a) Income from house property.
              \n(b) Income from any other head.
              \n(c) Profits of any business (except speculation business profit).
              \n(d) Profits of any business\/profession (including speculation business profit).
              \nAnswer:
              \n(d) Profits of any business\/profession (including speculation business profit).<\/p>\n

              Question 8.
              \nIn the case of a closely-held company (not being a company in which the public are substantially interested), the losses incurred in any year prior to the previous year can be carried forward and set off if\u2014
              \n(i) on the last day of the previous year, the shares of the company carrying not less than _______ of the voting power;
              \n(ii) were beneficially held by persons who beneficially held shares of the company carrying not less than _______ of the voting power on the last day of the year(s) in which the loss was incurred.
              \n(a) 25%, 25%
              \n(b) 51%, 51%
              \n(c) 75%, 75%
              \n(d) 50%, 50%
              \nAnswer:
              \n(b) 51%, 51%<\/p>\n

              \"Aggregation<\/p>\n

              Question 9.
              \nThe sequence applicable for set off of losses shall be –
              \n(a) (i) Inter source set-off; (ii) Inter head set-off; and (iii) Set-off of brought forward losses.
              \n(b) (i) Inter head set-off; (ii) Inter source set-off; and (iii) Set-off of brought forward losses.
              \n(c) (i) Set-off of brought forward losses; (ii) Inter source set-off; and (iii) Inter head set-off.
              \n(d) (i) Set-off of brought forward losses; (ii) Inter head set-off; and (iii) Inter source set-off.
              \nAnswer:
              \n(a) (i) Inter source set-off; (ii) Inter head set-off; and (iii) Set-off of brought forward losses.<\/p>\n

              Question 10.
              \nLoss from specified business referred in Section 35AD can be carried forward
              \n(a) For 8 years
              \n(b) For 4 years
              \n(c) Indefinitely
              \n(d) 6 years
              \nAnswer:
              \n(c) Indefinitely<\/p>\n

              \"Aggregation<\/p>\n

              Aggregation of Income, Set-off and Carry Forward of Losses Notes<\/strong><\/p>\n

              Substitution of new section for section 72AA.
              \nFor section 72AA of the Income-tax Act, the following section shall be substituted, namely:-
              \n’72AA. Carry forward and set off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation in certain cases.\u2014Notwithstanding anything contained in sub-clauses (i) to (iii) of clause (1B) of section 2 or section 72A, where there has been an amalgamation of:
              \n(i) one or more banking company with any other banking institution under a scheme sanctioned and brought into force by the Central Government under sub-section (7) of section 45 of the Banking Regulation Act, 1949 (10 of 1949); or<\/p>\n

              (ii) one or more corresponding new bank or banks with any other corresponding new bank under a scheme brought into force by the Central Government under section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) or both, as the case may be; or<\/p>\n

              (iii) one or more Government company or companies with any other Government company under a scheme sanctioned and brought into force by the Central Government under section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), the accumulated loss and the unabsorbed depreciation of such banking company or companies or amalgamating corresponding new bank or banks or amalgamating Government company or companies shall be deemed to be the loss or, as the case may be, allowance for depreciation of such banking institution or amalgamated corresponding new bank or amalgamated Government company for the previous year in which the scheme of amalgamation was brought into force and other provisions of this Act relating to set off and carry forward of loss and allowance for depreciation shall apply accordingly.<\/p>\n

              \"Aggregation<\/p>\n

              Explanation. – For the purposes of this section,-
              \n(i) “accumulated loss” means so much of the loss of the amalgamating banking company or companies or amalgamating corresponding new bank or banks or amalgamating Government company or companies under the head “Profits and gains of business or profession” (not being a loss sustained in a speculation business) which such amalgamating banking company or companies or amalgamating corresponding new bank or banks or amalgamating Government company or companies, would have been entitled to carry forward and set off under the provisions of section 72, if the amalgamation had not taken place;<\/p>\n

              (ii) “banking company” shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);<\/p>\n

              (iii) “banking institution” shall have the meaning assigned to it in sub-section (15) of section 45 of the Banking Regulation Act, 1949 (10 of 1949);<\/p>\n

              (iv) “corresponding new bank” shall have the meaning assigned to it in clause (d) of-section 2 of the Banking Companies (Acquisition and’ Transfer of Undertakings) Act, 1970 (5 of 1970) or, as the case may be, clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);<\/p>\n

              (v) “general insurance business” shall have the meaning assigned to it in clause (g) of section 3 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);<\/p>\n

              (vi) “Government company” means a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), which is engaged in the general insurance business and which has come into existence by operation of section 4 or section 5 or section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);<\/p>\n

              \"Aggregation<\/p>\n

              (vii) “unabsorbed depreciation” means so much of the allowance for depreciation of the amalgamating banking company or companies or amalgamating corresponding new bank or banks or amalgamating Government company or companies which remains to be allowed and which would have been allowed to such banking company or companies or amalgamating corresponding new bank or banks or amalgamating Government company or companies, if the amalgamation had not taken place.’.<\/p>\n","protected":false},"excerpt":{"rendered":"

              Aggregation of Income, Set-off and Carry Forward of Losses \u2013 CA Inter Tax Question Bank\u00a0is designed strictly as per the latest syllabus and exam pattern. Aggregation of Income, Set-off and Carry Forward of Losses \u2013 CA Inter Tax Question Bank Question 1. Answer the following : Discuss briefly on carry forward and set off of …<\/p>\n

              Aggregation of Income, Set-off and Carry Forward of Losses \u2013 CA Inter Tax Question Bank<\/span> Read More »<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[167],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/24189"}],"collection":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/comments?post=24189"}],"version-history":[{"count":1,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/24189\/revisions"}],"predecessor-version":[{"id":24232,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/24189\/revisions\/24232"}],"wp:attachment":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/media?parent=24189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/categories?post=24189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/tags?post=24189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}