CMA Intermediate · Direct and Indirect Taxation · Profits and Gains of Business or Profession
Under the Income-tax Act, 2025, a loss computed in respect of a speculation business carried on by an assessee can be set off only against:
A speculation business loss can be set off only against profits and gains of another speculation business. It cannot be adjusted against normal business income or any other head, because the Act treats speculation business as distinct and separate.
- AProfits and gains of another speculation businessCorrect
- BIncome from any business or profession
- CIncome under the head Capital gains
- DIncome from house property
Explanation
Section 113(1) restricts set off of a speculation loss to the profits and gains of another speculation business. Setting it off against normal business income, capital gains or house property income is not allowed.
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