CMA Intermediate · Direct and Indirect Taxation · Profits and Gains of Business or Profession
A speculation loss first computed for tax year 2026-27 can be carried forward for not more than how many tax years immediately succeeding that year?
Four tax years. Under section 113(3), a speculation loss may be carried forward only for four tax years immediately succeeding the year in which it was first computed, and any unabsorbed balance lapses after that period.
- AEight
- BFourCorrect
- CTwo
- DFive
Explanation
Section 113(3) says no speculation loss is carried forward for more than four tax years immediately succeeding the year it was first computed. So 2027-28 to 2030-31 are the available years.
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