Mr Deepanshu, a 35 years old Indian citizen and resident in India in the previous year. He is conducting three different business activities (speculative and non-speculative). He also has income and losses from House property, capital gains and other sources. He is confused in setting-off and carry forward of losses from different sources among different heads on intra head and inter head basis. Help and guide him.
Answers
Mr Deepanshu, a 35 years old Indian citizen and resident in India in the previous year. He is conducting three different business activities (speculative and non-speculative). He also has income and losses from House property, capital gains and other sources. He is confused in setting-off and carry forward of losses from different sources among different heads on intra head and inter head basis. Help and guide him.
Explanation:
Mr Deepanshu should first separate all the three businesses into distinct entities that are independent of each other. He should then hire an accountant to keep books for the three businesses.
He should also inspect the books after a set period of time, e.g one month to check the progress of each business.He should invest more in the business(es) that have superior returns. He should also refrain or reduce his holdings in speculative ventures.