What is the sequence of non-speculative income loss set off?

Taxation
1

If we have a loss in non-speculative income, how does the set-off happens? I mean what is the sequence?
Other sources Income then STCG and then LTCG?

@Quicko

1 Like
2

Hey @Jack_R, you can read about the rules of set off and carry forward of losses from this article:

3

@Quicko Article does not talk about the sequence. Can you please specify the sequence?

1 Like
4

CYL section in itr will automatically do as per inter-head and intrahead set-off as mentioned by @Quicko . There is no proper sequence of what will be next set off and you can’t setoff salary income with business income, there we can only claim deduction. Even there will be sequence that is how it wil set-off it will be mentioned are equation ‘A-B-C’ refer to CYL SECTION as this equation won’t matched the same as in the section.

EVEN after set-off with other income you will taxed on net profit as equation it always stated as

A+B+C+D+E-G-H-I =E-G-H-I+A+C+B+D

*Not expert on itr but it’s logical

@Quicko Correct me if I am wrong.