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Speculative business loss can be set off only against:
ACapital gains
BAny business income
CSpeculative business income
DOther sources
Answer & Solution
Correct answer: C. Speculative business income
1. Explanation 2 to Section 28: speculative business = transactions settled otherwise than by actual delivery.
2. Section 73: loss from speculative business set off only against speculative income.
3. Speculative loss carried forward 4 AYs (vs. 8 for non-speculative).
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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