Many people own and maintain horses for the purpose of horse racing. A question may arise how is income from this business taxed? While winnings from horse races are taxed @30%, income from the business of maintaining racehorses is taxed at normal rates.
Carry forward and set off of losses:
- The amount of loss incurred by the assessee in the activity of owning and maintaining racehorses can be set off only against income from the activity of owning and maintaining racehorses.
- Losses incurred from the activity of owning and maintaining racehorses can be carried forward up to four assessment years immediately succeeding the assessment year for which the loss was first computed.
- Loss incurred from this activity cannot be carried forward if the return is not filed within the due date.