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Non-speculative business loss in current year can be set off against:
ASalaries
BSpeculative income only (per relevant Section)
CCapital gains only
DIncome under any head except salaries
Answer & Solution
Correct answer: D. Income under any head except salaries
1. Section 71 governs inter-head set-off.
2. Non-speculative business loss set off against income under any head except salaries.
3. Section 72: c/f for 8 AYs against future business income.
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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