www.badlanionline.com No.1 IPCC-Tax Set off Carry forward of Losses P a g e 1 Set off or carry Forward Losses Q.1. R, a resident individual, submits the following information relevant for the previous year ending on 31.3.201 4 : Rs. (a) Income from salary (Computed) + 62,000 (b) Interest on securities + 2,000 (c) Income from House Property House No. 1 + 12,000 House No. 2 - 50,000 House No. 3 - 10,000 (d) Profit and Gains from Business : Business No. 1 + 16,000 Business No. 2 - 12,000 Business No. 3 (speculative) - 64,000 Business No. 4 (speculative) + 36,000 (e) Capital gains : Short-term capital gains (computed) - 60,000 Long-term capital gains (computed) + 54,000 (f) Income from card games and betting (gross) + 60,000 Loss from maintenance of race horses - 46,000 Income from maintaining horses and winning of races + 20,000 Determine the total income of R for the assessment year 2014-15. Q.2. The following are the particulars of income of R as determined by the Assessing Officer for the assessment year 2013- 14 and 2014-15 . Compute his total income for the assessment year 2010-11. Assessment Year 2013-14 Loss from speculation business (discontinued) 1,40,000 Loss from Hardware business 84,000 Profit from Paints business (before charging depreciation of Rs. 1,40,000) 1,12,000 Profit from Tyre business 70,000 Income from House Property 28,000 Assessment Year 2014-15 Profit from speculation in commodities 2,80,000 Loss from Hardware business 28,000 Profit from business of paints (before charging depreciation of Rs. 1,40,000) 84,000 Profit from business of tyres 2,24,000 Income from House Property 28,000 Q.3. X, a resident individual, submits the following information, relevant to the previous year ending 31.3.201 4 : (1) Income from salary (c omputed) 60,000 (2) Income from house property House I 12,000 House II (-) 50,000 House III (Self-occupied) (-) 10,000 (3) Profit and gains of busines s or profession Business I 12,000 Business II (-) 8,000 Business III (Speculative) (-) 64,000 Business (IV) (Speculative) 36,000 (4) Capital gains Short-term capital loss (-) 6,000 Long-term capital gains on transfer of shares 5,400 (5) Income from other sources (computed): Income from card games 36,000 Income from betting 24,000 Loss on maintenance of race horses (-) 4,600 Determine the gross total income for the assessment year 2014-15. Q.4. Mr. Gopi submits the following information for the financial year ending 31.3.201 4. He desires that you should : (a) Compute the total income and (b) Ascertain the amount of losses that can be carried forward : Rs. (i) H has two house :
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www.badlanionline.com No.1
IPCC-Tax
Set off Carry forward of Losses
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Set off or carry Forward Losses
Q.1. R, a resident individual, submits the following information relevant for the previous year ending on 31.3.2014 :
Rs. (a) Income from salary (Computed) + 62,000 (b) Interest on securities + 2,000 (c) Income from House Property
House No. 1 + 12,000
House No. 2 - 50,000
House No. 3 - 10,000
(d) Profit and Gains from Business : Business No. 1 + 16,000
Business No. 2 - 12,000
Business No. 3 (speculative) - 64,000
Business No. 4 (speculative) + 36,000
(e) Capital gains : Short-term capital gains (computed) - 60,000
Long-term capital gains (computed) + 54,000
(f) Income from card games and betting (gross) + 60,000 Loss from maintenance of race horses - 46,000
Income from maintaining horses and winning of races + 20,000
Determine the total income of R for the assessment year 2014-15.
Q.2. The following are the particulars of income of R as determined by the Assessing Officer for the assessment year 2013-
14 and 2014-15. Compute his total income for the assessment year 2010-11.
Assessment Year 2013-14
Loss from speculation business (discontinued) 1,40,000
Loss from Hardware business 84,000
Profit from Paints business (before charging depreciation of Rs. 1,40,000) 1,12,000
Profit from Tyre business 70,000
Income from House Property 28,000
Assessment Year 2014-15
Profit from speculation in commodities 2,80,000
Loss from Hardware business 28,000
Profit from business of paints (before charging depreciation of Rs. 1,40,000) 84,000
Profit from business of tyres 2,24,000
Income from House Property 28,000
Q.3. X, a resident individual, submits the following information, relevant to the previous year ending 31.3.2014 :
(1) Income from salary (computed) 60,000 (2) Income from house property
House I 12,000
House II (-) 50,000
House III (Self-occupied) (-) 10,000
(3) Profit and gains of business or profession Business I 12,000
Business II (-) 8,000
Business III (Speculative) (-) 64,000
Business (IV) (Speculative) 36,000
(4) Capital gains Short-term capital loss (-) 6,000
Long-term capital gains on transfer of shares 5,400
(5) Income from other sources (computed): Income from card games 36,000
Income from betting 24,000
Loss on maintenance of race horses (-) 4,600
Determine the gross total income for the assessment year 2014-15.
Q.4. Mr. Gopi submits the following information for the financial year ending 31.3.2014. He desires that you should :
(a) Compute the total income and (b) Ascertain the amount of losses that can be carried forward :
Rs.
(i) H has two house :
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www.badlanionline.com No.1
IPCC-Tax
Set off Carry forward of Losses
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(a) House No. I Income after all statutory deductions 72,000 (b) House No. II- Current year loss (30,000) (ii) He has three proprietary businesses : (a) Textile business :
(i) Discontinued from 31.10.2013 Current year loss 40,000 (ii) Brought forward business loss of the assessment year 2010-11 95,000
(b) Chemical business : (i) Discontinued from 1.3.2012 hence no profit/loss Nil (ii) Bad debts allowed in earlier years recovered during this year 3,500 (iii) Brought forward business loss of the assessment year 2012-2013 50,000
(c) Leather Business : Profit for the current year 1,00,000 (d) Share of profit un a firm in which he is Partner since 2006 16,550
(iii) a. Short-term capital gain 60,000
b. Loan-term capital loss 35,000
(iv) Contribution to LIC towards Premium 10,000
Q.5. R submits the following information for previous year 2013-14 relevant to the assessment year 2014-15 :
Rs.
1. Profit from Business X situated in Bangalore 2. Profit from Business Y situated in Hyderabad 3. Loss from Business Z carried in Germany (the business is controlled from India but profits are not
received in India)
4. Unabsorbed depreciation of business Z 5. Income from house property situated in India 6. Income from house property situated in London
(rent received in London)
2,80,000
1,25,000
85,000
45,000
30,000
50,000
Find out the Gross Total Income of R for the assessment year 2010-11 if he is (a) Resident in India (b) Not ordinarily resident in
India and (c) None-resident in India.
Q.6. Kareena Pvt Ltd. Submits the following information
Previous Year 2011-12
Previous Year
2012-13 Previous Year
2013-14
Business income/loss
Unabsorbed depreciation
(-) 1,50,000
40,000
(-) 2,50,000
80,000
(+) 5,00,000
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Shareholding as on last day of P.Y.
Kareena 35%
Rani 20%
Shahid 15%
Abhishek 30%
Kareena 35%
Rani 20%
Saif 15%
Fardeen 30%
Kareena 35%
Priyanka 20%
Saif 15%
Fardeen 30%
Can the losses of previous year 2011-12 and 2012-13 be set off against the income of previous year 2013-14 ?
Q.7. X, a resident individual, furnishes the following particulars of his income and other details for the previous year 2013-
14 :
Rs. Income from salary 18,000
Taxable income from house property 70,000
Income from business 80,000
Income from speculative business 12,000
Long term capital gain on sale of land 15,800
Loss on maintenance of horse race 9,000
Loss on gambling 8,000
Depreciation allowable under the Income-tax Act comes to Rs. 8,000 for which no treatment is given above. The other details of
unabsorbed depreciation and brought forward losses are:
Rs. Unabsorbed depreciation 9,000
Loss from speculative business 16,000
Short-term capital loss 7,800
Unrealised rent 17,000
Compute the gross total income of X for the assessment year 2014-15 and amount of loss that can or cannot be carried forward.
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