Tax Losses

Question 1

Summary

Answer 1

1. No concept of loss in Income from Salary and income from property.
2. Loss arising on Income from Business (non-speculation) and Income from Other Sources can be adjusted aga
   any other head in the current year except salary.
3. Loss arising on Income from Business (Speculation) and Income from Capital Gains cannot be adjusted agaist
   any other head of income in current year.
4. Income from Business (Speculation), Income from Business (non-speculation), Income from Capital Gain losses
   can be carried forward up to next 6 tax years immediately after the tax year in which loss was com
   can only be adjusted against the same head.The loss of the earliest tax year shall be set off first
5. If there is a loss in the current year under Income from Business (non-speculation) and Income from Other
   Sources then loss under Income from Business (non-speculation) shall be adjusted last.
6. No loss can be set off against Securities, Property Income or income falling under FTR and exempt income.
7. Pakistan Source Loss cannot be adjusted against Foreign Source Income and vice versa.