What will happen to the losses incurred?
In case of loss incurred in respect of any IA, it will get set-off against income from CG of other IA. In case, if the total of gain / loss of all the IA are negative i.e. the assessee has made the losses under the head CG, taxable income under it will be considered as NIL [S 47(4)]. It means that losses computed under the head CG will be carried forward as “Unabsorbed Current Capital Loss” (UCCL). Since, it is not permitted to be aggregated with that of the income from ordinary sources, loss under CG cannot be set-off against income from, say, employment or business etc. The Discussion Paper refers to it as “ring-fenced” meaning thereby the loss under CG will be fenced and is permitted to move within defined area.
Related Questions
- I know that investment losses on normal IRAs aren deductible but what about investment losses I have incurred in my non-deductible IRA account?
- Do these new losses have to be incurred in Operations Enduring Freedom or Iraqi Freedom (OEF/OIF)? Are they retroactive to a certain date?
- Do we have any statistics regarding losses incurred by FIs due to unresolved bill payments?
