what is capital loss and revenue loss?pls it's urgent
Dear Student
Capital losses are the losses which arise due to capital assets for e.g Loss on sale of Property or Loss on sale of land. Both of these property and land are capital assets as they are fixed in nature and life of these is very large.
So in short Losses caused by capital assets are capital losses.
On the other hand
Revenue loss simply means loss due to basic principle business activity of the organization. For E.G Sales Rs 10,00,000/- and Expenses are Rs 12,00,000/- then here Rs 2,00,000/- loss shall be termed as revenue loss as it has been caused due to basic principle activity of business i.e Trading or purchase and Sell.
Regards
Capital losses are the losses which arise due to capital assets for e.g Loss on sale of Property or Loss on sale of land. Both of these property and land are capital assets as they are fixed in nature and life of these is very large.
So in short Losses caused by capital assets are capital losses.
On the other hand
Revenue loss simply means loss due to basic principle business activity of the organization. For E.G Sales Rs 10,00,000/- and Expenses are Rs 12,00,000/- then here Rs 2,00,000/- loss shall be termed as revenue loss as it has been caused due to basic principle activity of business i.e Trading or purchase and Sell.
Regards