Speculation business losses offset only against same business profits; carry forward for four years.

Losses from speculation business can only be set off against profits from another speculation business within the same tax year. Unabsorbed losses can be carried forward for up to four subsequent tax years, solely against speculation business profits. Before using any carried forward allowances under other sections, unabsorbed losses must be set off first. A company involved in buying and selling shares is considered to be in speculation business, except if its main income is from house property, capital gains, or other sources, or if its principal business is trading in shares, banking, or granting loans and advances.