Tax Book 2023

Losses Chapter- 14

income, if so allowed under the Ordinance.

3. INCOME FROM
   BUSINESS – NON
   SPECULATION
   BUSINESS

Loss can be set off against any other head of

income chargeable to tax under NTR except

income from salary. However business loss

shall be set off last.

 Unadjusted business loss

can be carry forward for

adjustment only against

profit under same head, upto

six (6) succeeding tax years

following the year in which

loss incurred.

 Un adjusted business loss

related to tax year

commencing on or after the

First day,, of July, 2020 if

sustained by a resident

company engaged in the

hotel business in Pakistan

the said loss shall be carried

forward for a period of 8

years.

4. INCOME FROM
   BUSINESS –
   SPECULATION
   BUSINESS

Loss from speculation business can be set

off only against the income of any other

speculation business.

Unadjusted speculation loss

can be carry forward for

adjustment only against profit

under same head, upto six (6)

succeeding tax years following

the year in which loss incurred.

5(A) CAPITAL GAINS –

EXCEPT 5(B),

5(C) & 5(D) AS

UNDER

Capital loss cannot be set off against any

other head of income except against capital

gain.

Unadjusted capital loss can be

carry forward for adjustment

only against gain under same

head, upto six (6) succeeding

tax years following the year in

which loss incurred.

5(B) CAPITAL GAINS –

ON SECURITIES

U/S 37A

The loss on disposal of securities may be set

off only against any other security chargeable

to tax under this section.

Unadjusted loss under this

head shall be carried forward in

the succeeding three tax years

for adjustment against the

gains on disposal of securities

chargeable to tax.

5(C) CAPITAL GAINS –

IMMOVEABLE

PROPERTY U/S

37(1A)

Loss on disposal of immoveable property

cannot be set off.

Loss under this head cannot be

carried forward.

5(D) CAPITAL GAINS –

ON PERSONAL

MOVEABLE

ASSETS

SPECIFIED U/S

38(5)

Loss on disposal of moveable personal

assets shall not be recognised under the said

section.

As loss under this section shall

not be recognized therefore the

question of carry forward does

not arise.

6. INCOME FROM

OTHER SOURCES

Loss can be set off against any other head of

income chargeable to tax under NTR except

salary and property incomes.

Loss under this head cannot be

carried forward to succeeding

tax years for adjustment.