Securities Act 2063

Chapter 8 Assessment of Net Profit from Property and Liability

Section 36 : Net profits from property and liability
1) The net profits derived from the disposal of business property or liability of a business of any person for any income year shall be computed by deducting the following losses from the sum of all profits derived from the disposal of business property or liability of that business in that income year:-
a) The sum of all losses suffered in that year from the disposal of business property or liability,
b) The loss that could not be deducted elsewhere out of the net loss suffered from any other business of that person in that year and
c) The loss that could not be deducted out of the net loss suffered from that business in any income year or from any other business of that person in the past.
2) The net profits derived from the disposal of taxable nonbusiness property of investment of any person for any income year shall be computed by deducting the following losses from the sum of all profits derived from the disposal of taxable non-business of that investment in that income year:-
a) The sum of all losses suffered in that year from the disposal of taxable non-business property of that investment,
b) The loss that could not be deducted elsewhere out of the net loss suffered from any other business or investment of that person in that year and
c) The loss that could not be deducted out of the net loss suffered from that investment, any business or any other investment of that person in any past income year.
3) Any person can make a claim for deduction pursuant to sub-section (1) or (2) in respect of a loss suffered from the disposal of the property or liability of a foreign source only to the extent of the benefit derived from the disposal of any property or liability of foreign source.
4) If any person is entitled, under sub-section (1) or (2), to deduct the net loss suffered from a business or investment in more than one computation pursuant to sub-section (1) or (2), he may select computations for the purpose of deducting that loss or portion thereof.
Explanation
: For purposes of this Act,-
(1) “Net loss” means-
(a) In respect of any business, the amount to the extent that the loss suffered from the disposal of the business property or liability of that business in any income year exceeds the profit derived from the disposal of business property or liability of that business in that year, and
(b) In respect of any investment, the amount to the extent that the loss suffered from the disposal of the taxable non-business property of that investment in any income year exceeds the profit derived from the disposal of taxable non-business property of that investment in that year.
(2) “Net loss that could not be deducted” means, with respect to any business or investment-
(a) The loss that could not be deducted pursuant to clause (b) or (c) of sub-section (1) or clause (b) or (c) of sub-section (2) out of the net loss suffered in that year and
(b) Any loss of that business or investment that could not be deducted referred to in sub-section (7) of Section 20, which could not be remitted by virtue of the time-limit referred to in sub-section (1) or (2) of Section 20.