CAF-2 · Chapter 7 · Question 2 of 15
Mr. A incurred a loss of Rs. 500,000 in a speculation business during the tax year. How can this loss be treated under the Income Tax Ordinance, 2001?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) It can only be set off against income from another speculation business and can be carried forward up to six tax years.
Explanation
A speculation business is treated as distinct and separate. Any loss from it can only be set off against income from another speculation business and can be carried forward up to six immediately succeeding tax years.
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