State any five business losses which are not deductible from business income.

Non-Deductible Business Losses:

While businesses can deduct certain losses from their income to reduce their taxable income, there are specific types of losses that are not deductible under the Income Tax Act. Here are five business losses that are not deductible from business income:

1. Capital Losses:

• Losses incurred from the sale of capital assets, such as land, building, machinery, or investments, are considered capital losses. These losses are not deductible from business income but can be set off against capital gains.

2. Speculative Business Losses:

• Losses arising from speculative transactions, such as intra-day trading in stocks and shares or derivatives, are not deductible from business income. Speculative transactions are those where the purchase or sale of assets is settled without actual delivery.

3. Losses from Illegal Activities:

• Any losses incurred from illegal activities, such as smuggling, drug trafficking, or other criminal activities, are not deductible from business income.

4. Personal Expenses:

• Expenses that are personal in nature, such as residential rent, personal travel, clothing, and food expenses, are not deductible from business income. These expenses are considered to be for personal benefit and not related to the business.

5. Prohibited Business Activities:

• Losses from activities prohibited by law, such as activities that violate environmental regulations or engage in illegal trade practices, are not deductible from business income.

Conclusion:
Understanding which business losses are not deductible is important for businesses to accurately calculate their taxable income and comply with tax laws. By adhering to these rules, businesses can avoid penalties and ensure proper tax planning.