Which of the following losses is/are not allowed as a deduction, in computing income from Business and Profession? (i) Pre-incorporation losses (ii) Capital Losses, which are dealt with under the head Capital Gain (iii)

CS Executive · Tax Laws · PYQS · December 2022
Which of the following losses is/are not allowed as a deduction, in computing income from Business and Profession? (i) Pre-incorporation losses (ii) Capital Losses, which are dealt with under the head Capital Gain (iii) Loss incurred after closure of business
(A) (i) and (ii)
(B) (ii) and (iii)
(C) (iii)
(D) (i), (ii), (iii)

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B), (D). Official source note: Correct option is D. However, Option B may also be considered as correct if Pre-incorporation losses would be covered under section 35D i.e. deduction of preliminary expenses.

Topics: Income Tax Act, 1961

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic