Article covers Income Tax Act provisions related to Carry Forward and Set Off of Losses with Frequently asked Question and Answers.

Loss from exempted source of income cannot be adjusted against taxable income

If income from a particular source is exempt from tax, then loss from such source cannot be set off against any other income which is chargeable to tax.

E.g., Agricultural income is exempt from tax, hence, if the taxpayer incurs loss from agricultural activity, then such loss cannot be adjusted against any other taxable income.

Meaning of intra-head adjustment

If in any year the taxpayer has incurred loss from any source under a particular head of income, then he is allowed to adjust such loss against income from any other source falling under the same head.

The process of adjustment of loss from a source under a particular head of income against income from other source under the same head of income is called intra-head adjustment, e.g. Adjustment of loss from business A against profit from business B.

Restrictions to be kept in mind while making intra-head adjustment of loss

Following restrictions should be kept in mind before making intra-head adjustment of loss:

1) Loss from speculative business cannot be set off against any income other than income from speculative business. However, non-speculative business loss can be set off against income from speculative business.

2) Long-term capital loss cannot be set off against any income other than income from long-term capital gain. However, short-term capital loss can be set off against long-term or short-term capital gain.

4) No loss can be set off against income from winnings from lotteries, crossword puzzles, race including horse race, card game, and any other game of any sort or from gambling or betting of any form or nature.

5) Loss from the business of owning and maintaining race horses cannot be set off against any income other than income from the business of owning and maintaining race horses.

6) Loss from business specified under section 35AD cannot be set off against any other income except income from specified business (section 35AD is applicable in respect of certain specified businesses like setting up a cold chain facility, setting up and operating warehousing facility for storage of agricultural produce, developing and building a housing projects, etc.).

Meaning of inter-head adjustment

After making intra-head adjustment (if any) the next step is to make inter-head adjustment. If in any year, the taxpayer has incurred loss under one head of income and is having income under other head of income, then he can adjust the loss from one head against income from other head, E.g., Loss under the head of house property to be adjusted against salary income.

Restrictions to be kept in mind while making inter-head adjustment of loss Following restrictions should be kept in mind before making inter-head adjustment:

1) Before making inter-head adjustment, the taxpayer has to first make intra-head adjustment.

2) Loss from speculative business cannot be set off against any other income. However, non-speculative business loss can be set off against income from speculative business.

3) Loss under head “Capital gains” cannot be set off against income under other heads of income.

4) No loss can be set off against income from winnings from lotteries, crossword puzzles, race including horse race, card game, and any other game of any sort or from gambling or betting of any form or nature.

5) Loss from the business of owning and maintaining race horses cannot be set off against any other income.

6) Loss from business specified under section 35AD cannot be set off against any other income (section 35AD is applicable in respect of certain specified businesses like setting up a cold chain facility, setting up and operating warehousing facility for storage of agricultural produce, developing and building housing projects, etc.)

7) Loss from business and profession cannot be set off against income chargeable to tax under the head “Salaries”.

8) With effect from the assessment year 2018-19, loss under the head “house property” shall be allowed to be set-off against any other head of income only to the extent of Rs. 2,00,000 for any assessment year.

9) However, unabsorbed loss shall be allowed to be carried forward for set-off in subsequent years as per the existing provisions of section 71B. (Provisions relating to carry forward of loss from house property is discussed later.)

Carry forward of unadjusted loss for adjustment in next year

Many times it may happen that after making intra-head and inter-head adjustments, still the loss remains unadjusted. Such unadjusted loss can be carried forward to next year for adjustment against subsequent year(s)’ income. Separate provisions have been framed under the Income-tax Law for carry forward of loss under different heads of income.

Provisions under the Income-tax law in relation to carry forward and set off of business loss other than loss from speculative business

If loss of any business/profession (other than speculative business) cannot be fully adjusted in the year in which it is incurred, then the unadjusted loss can be carried forward for making adjustment in the next year. In the subsequent year(s) such loss can be adjusted only against income charged to tax under the head “Profits and gains of business or profession”

Loss under the head “Profits and gains of business or profession” can be carried forward only if the return of income/loss of the year in which loss is incurred is furnished on or before the due date of furnishing the return, as prescribed under section 139(1).

Such loss can be carried forward for eight years immediately succeeding the year in which the loss is incurred.

Above provisions are not applicable in case of unabsorbed depreciation (provisions relating to unabsorbed depreciation are discussed later)

Loss from business specified under section 35AD cannot be set off against any other income except income from specified business (section 35AD is applicable in respect of certain specified businesses like setting up a cold chain facility, setting up and operating warehousing facility for storage of agricultural produce, developing and building a housing projects, etc.). Such loss can be carried forward for adjustment against income from specified business for any number of years.

Loss from business specified under section 35AD can be carried forward only if the return of income/loss of the year in which loss is incurred is furnished on or before the due date of furnishing the return as prescribed under section 139(1).

Loss from the business of owning and maintaining race horses cannot be set off against any income other than income from the business of owning and maintaining race horses. Such loss can be carried forward only for a period of 4 years.

If loss of any speculative business cannot be fully adjusted in the year in which it is incurred, then the unadjusted loss can be carried forward for making adjustment in the next year. In the subsequent year(s) such loss can be adjusted only against income from speculative business (may be same or any other speculative business).

Loss from speculative business can be carried forward only if the return of income/loss of the year in which loss is incurred is furnished on or before the due date of furnishing the return, as prescribed under section 139(1).

Such loss can be carried forward for four years immediately succeeding the year in which the loss is incurred.

Above provisions are not applicable in case of unabsorbed depreciation of speculative business (provisions relating to unabsorbed depreciation are discussed later).

Provisions under the Income-tax Law in relation to carry forward and set off of house property loss

If loss under the head “Income from house property” cannot be fully adjusted in the year in which such loss is incurred, then unadjusted loss can be carried forward to next year.

In the subsequent years(s) such loss can be adjusted only against income chargeable to tax under the head “Income from house property”.

Such loss can be carried forward for eight years immediately succeeding the year in which the loss is incurred.

Loss under the head “Income from house property” can be carried forward even if the return of income/loss of the year in which loss is incurred is not furnished on or before the due date of furnishing the return, as prescribed under section 139(1).

Provisions under the Income-tax law in relation to carry forward and set off of capital loss

If loss under the head “Capital gains” incurred during a year cannot be adjusted in the same year, then unadjusted capital loss can be carried forward to next year.

In the subsequent year(s), such loss can be adjusted only against income chargeable to tax under the head “Capital gains”, however, long-term capital loss can be adjusted only against long-term capital gains. Short-term capital loss can be adjusted against long-term capital gains as well as short-term capital gains.

Such loss can be carried forward for eight years immediately succeeding the year in which the loss is incurred.

Such loss can be can carried forward only if the return of income/loss of the year in which loss is incurred is furnished on or before the due date of furnishing the return, as prescribed under section 139(1).

Meaning of unabsorbed depreciation, unabsorbed capital expenditure on scientific research and unabsorbed capital expenditure on promoting family planning amongst the employees

Apart from several other deductions, while computing income chargeable to tax under the head “Profits and gains of business or profession” a person is allowed to claim deduction on account for depreciation, capital expenditure incurred by him on scientific research and capital expenditure incurred by a company for promoting family planning amongst its employees.

If the income of the year in which these expenses are incurred falls short of these expenses, then the unabsorbed expenses can be carried forward to next year in the form of unabsorbed depreciation or unabsorbed capital expenditure on scientific research or unabsorbed capital expenditure on promoting family planning amongst the employees.

Illustration for better understanding

Business income (computed as per the provisions of Income-tax Law) of Mr. Kiran before allowing deduction on account of depreciation amounted to Rs. 84,000. Depreciation as per the provisions of section 32 amounted to Rs. 1,00,000. What will be the amount of unabsorbed depreciation in this case?

**

It can be observed that business income before claiming deduction under section 32 on account of depreciation is Rs. 84,000 and depreciation allowable as per section 32 is Rs. 1,00,000, hence, after claiming deduction on account of depreciation of Rs. 1,00,000, there will be a loss of Rs. 16,000.

This loss is on account of depreciation and, hence, loss of Rs 16,000 will be termed as unabsorbed depreciation.

Provisions under the Income-tax Law relating to set off of unabsorbed depreciation, unabsorbed capital expenditure on scientific research and unabsorbed capital expenditure on promoting family planning amongst the employees

Depreciation is first deducted from the income chargeable to tax under the head “Profits and gains of business or profession”. If such depreciation could not be fully adjusted against such income chargeable to tax in that previous year, the unabsorbed portion shall be added to the amount of depreciation for the following year and shall be deemed to be the part of depreciation for that year(similar treatment would be given to other allowances as mentioned above). However, in the case of set off, following order of priority is to be followed:

1) First adjustments are to be made for current scientific research expenditure, family planning expenditure and current depreciation.

2) Second adjustment is to be made for brought forward business loss.

3) Third adjustments are to be made for unabsorbed depreciation, unabsorbed capital expenditure on scientific research or on family planning.

Carry forward of loss in case of change in the constitution of business

Generally, the person incurring the loss is only entitled to carry forward the loss to be adjusted in subsequent year(s). However, in certain cases of reconstitution of the business like amalgamation, demerger, conversion of proprietary firm into company or conversion of partnership firm into company, etc., the reconstituted entity is entitled to carry forward the unadjusted loss of predecessor entity (provided that conditions specified in this regard are satisfied).

Provisions relating to carry forward of loss in case of retirement of a partner from a partnership firm

Section 78 contains provisions relating to carry forward and set off of loss in case of change in constitution of a partnership firm due to death or retirement of a partner (i.e. when a partner goes out of firm by retirement or death). In such a case, the share of loss attributable to the outgoing partner cannot be carried forward by the firm.

Restriction of section 78 is applicable only in case of loss and is not applicable in case of adjustment of unabsorbed depreciation, unabsorbed capital expenditure on scientific research or family planning expenditure.

Special provisions relating to carry forward and set-off of losses in case of change in shareholding of certain companies

Section 79 of the Income-tax Act, 1961 provides for carry forward and set-off of losses where a change in shareholding has taken place in a previous year in case of following companies:-

1) In case of a company, being a company in which the public are not substantially interested but not being an eligible start-up as referred to in section 80-IAC, no loss incurred in any year prior to the previous year in which change in shareholding has taken place shall be carried forward and set off against the income of the previous year, unless on the last day of the previous year, the shares of the company carrying not less than 51% of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than 51% of the voting power on the last day of the year or years in which the loss was incurred

2) In case of a company, being a company in which the public are not substantially interested and an eligible start-up as referred to in section 80-IAC, the loss incurred in any year prior to the previous year in which change in shareholding has taken place, shall be allowed to be carried forward and set off only if all the shareholders of the company who held shares carrying voting power on the last day of the previous year in which the loss was incurred, continue to hold shares on the last of the current year. Further, the loss should have been incurred during the period of 7 years beginning from the year in which the company is incorporated.

However, to facilitate ease of doing business in case of an eligible start-up, the Finance (no.2) Act, 2019 has amended section 79 to provide that loss incurred, by the closely held eligible start-up, shall be allowed to be carried forward and set off against the income of the previous year on satisfaction of either of the two conditions specified above, i.e., continuity of 51% shareholding or continuity of 100% of original shareholders. [w.e.f. Assessment Year 2020-21]

However, the provisions of section 79 shall not apply in following cases. In other words, there shall be no restriction on carry forward and set-off of losses if-

a) the change in shareholding takes place consequent upon the death of a shareholder or on account of transfer of shares by way of gift to any relative of the shareholder making such gift; or

b) the assessee is a subsidiary of a foreign company and the foreign holding company is amalgamated or merged with another foreign company subject to condition that 51% shareholders of the amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company.

c) the change in shareholding take place in the previous year pursuant to approved resolution plan under the Insolvency and Bankruptcy Code, 2016 after affording a reasonable opportunity of being heard to the jurisdictional Principal CIT or CIT.

d) A company, and its subsidiary and the subsidiary of such subsidiary, where:

e) National Company Law Tribunal (NCLT), on a petition moved by the Central Govt., has suspended the board of directors of such company and has appointed new directors.

Change in shareholding has taken place in a previous year pursuant to a resolution plan approved by the NCLT.

(Republished with Amendments)

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89 Comments

  1. CA Sanjay Goyal says:

    As per your above article, you have mentioned that “Loss under the head “Profits and gains of business or profession” can be carried forward only if the return of income/loss of the year in which loss is incurred is furnished on or before the due date of furnishing the return, as prescribed under section 139(1).
    Such loss can be carried forward for eight years immediately succeeding the year in which the loss is incurred.
    Above provisions are not applicable in case of unabsorbed depreciation “.

    Query: Kindly let us know the case laws in support of your statement that “Unabsorbed depreciation can be carried forward and set off even if Income Tax Return is filed belatedly”

    Kindly let us know.
    Thankyou.

  2. RAJA SIMHA NETHI says:

    WHEN AN ASSESSEE IS HAVING SALES OF 65LAKHS AND BUSINESS LOSS OF 29 LAKHS (AND THE BUSINESS PRAWNS FARMING) SO NOW DO WE REQURIED TO DO THE TAX AUDIT FOR THE SAME TO CARRYFORWARD THE LOSSES TO NEXT YEAR. PLEASE CLARIFY ME IN THIS REGARD WITH THE PROVISION IN THE INCOME TAX ACT THANKING YOU

  3. HARISH says:

    I have carried forward loss of 15 lacs from last year under business losses, current year income under this head is 2 lac, can I carry forward the last year loss (15 lac) in the next year without adjusting the loss in current year profit(2 lac). If yes should I skip showing last year losses in current year return.

  4. Srinivas says:

    I have Long term capital loss of Rs. 3,00,000/- carried forwarded from earlier years and current year I got Long term capital gain of Rs. 60,000/- U/s. 112A.
    My query is :
    1. whether such long term capital gain of Rs. 60,000/- is form part of total income?
    2. Whether such current year gain can be setoff against losses from earlier years as it is exempt from tax?

  5. Pravni says:

    Hi,My query is around ITR-2 with reference to brought forward loss of house property.
    If I have nil interest through home loan but have carried forward interest of 2lakhs from earlier years ,how to represent in iTR -2 ?Section BFLA in ITR cant be modified.

  6. Nikhil says:

    I have a scenario if you can help with it.
    Last year i had an total property loss of 261000. Of which i could setoff only 200000 and 61000 was carried forward.

    This year the total house interest and gains result in house property loss of 120000.

    Can i adjust 60000 from previous year to the 120000 which is still within limit of 200000?

    I added this in ITR2 xls which is published but seems that the adjustment only happens if there is a gain i.e the value from property loss is in +ve and not -ve.

    Do you see this as an issue with xls or my understanding is wrong in terms of setting off the house property loss?

    Thanks in advance.
    Nikhil

  7. Rasika Chandage says:

    Facts of the case :

    XYZ LLP is in the business of running of resorts. The land is owned by the partners of LLP and the building and other facilities are owned by LLP.

    It has accumulated business+dep loss of Rs 25 lakhs on 31/3/2019.

    It has suspended its business activity due to losses and given the entire facility on rent to Mr Smart wef 1/7/2019 for 2 years. @ Rs 5 lakhs per month.

    Your views are required on the following :-

    1. Under what head would the Lease rentals be charged ?

    2. Whether income for Lease rental can be setoff against past losses of LLP?

    3. The partners have introduced funds in LLP by way of Loan and are getting interest on this amount from LLP.

    a) Whether TDS needs to be deducted ?

    b) Whether this interest income can be adjusted against interest paid by them (to invest in LLP) in their individual capacity on loans taken from banks/others?

    1. Abhishek says:

      1. Income of lease rent will be charged under House Property head.since building is owned by LLP.
      2. Loss of business can be set off against income of HP income.
      3. a) TDS on Interest is applicable u/s 194A.
      3. b) Interest exp. can be claimed u/s 37(1) in hands of partners.

  8. Madhuri says:

    There is a business loss for the current year and gain under the head capital gains and income from other sources. Is there any priority in adjusting the losses like first we need adjust against IFOS only first and not against CG?

    1. Mansi says:

      In case rate of tax on Income from Other Sources is more than CG, then beneficial will be to set off business loss against IFOS and not CG and vice versa

  9. Baljinder says:

    I was working with pvt limited company which has NOT paid my Salary and other Full and Final settlement dues but deducted TDS and also paid TDS to IT department. How can I claim deductions for the salary not received? Can I declare them as losses? If yes, then under what head can it be filed. Please guide.

  10. Pushkar says:

    Getting following error will filling ITR 3

    Current year speculative business loss should not exceed that total speculative business loss set off

    There is not profit or loss from speculative business at all
    pl help to resolve the issue

  11. Deepak says:

    I sold a flat and incur LTCG of 1 lakh … When i purchased the flat i have given Interest with put claiming IT benefit ..is there anyway i can set off those losses in capital gain here????

  12. Anshuman says:

    I have Short Term Capital Losses (e.g. 100 ) and Long Term Capital Gains (tax exempt, sold before 1st jan 2018) of 100.
    So the question is should I mention the LTCG in the schedule CG ? Or should I mention the LTCG only in the Schedule EI (exempt income) tab ? Or both ?
    Now if I enter both of them in Schedule CG , then the losses to be carried forward are being net off. (i.e. 0 loss). I do not want this, as 100 LTCG is not taxable hence Rs 100 Short term capital loss should be carried forward.

  13. Shrikant says:

    In my IT Return of last FY, I didn’t mention CFL & STCL in that year. This FY, however I have made STCG. Can I set off the STCG with the losses & CFL of previous years in the same category, viz. STCG/STCL from shares for which STT was paid. All the IT Returns for previous years were filed before due dates.

  14. Rashi says:

    I am filing a return of FY.16-17 of a Private Limited Company which has losses in current year,but due to filing of return after due date i am not supposed to carry it forward. can someone guide me how to stop the loss from being carried forward in excel utility.

  15. adarsh says:

    If there is business loss still left after set off against inter head adjustment , can we set off the remaining business loss against short term capital gain ???
    Please answer my question and help me..

  16. BJAIN says:

    I have short term capital gain of Rs 5.00 lacs on sale of unlisted shares chargeable @ 30% and short term capital loss of Rs 2 lacs on sale of listed shares chargeable @ 15% as STT is paid. Can I set off this loss with normal capital gain of Rs 5 lac.
    And if so, what are the implications as ITR reflects that 30% short term capital gain is adjusted against 15% short term capital loss.

  17. Rahul Bhutoria says:

    As it states: Loss from exempt source of Income cannot be set off against profit from any taxable source of Income

    Accordingly can I read it as Loss on sale of Capital asset (on which STT is paid) can be adjusted with profit on Long term capital asset arise in the same year or in the next years i.e. net 8 years the same can be carried forwarded?

    Your prompt reply would be appriciated

  18. Naveli says:

    @sarbendu sanyal : balance loss under income from hp can be c/f to next assessment year (not more than 8 assessment years) and set-off only against income from hp against that assessment year in which you set off.
    -finance act 2017 source

  19. SARBENDU SANYAL says:

    Thank you guys for such an informative article!
    I request one more clarity.
    My HP loss for FY2018 will be Rs. 3,50,000. As Finance Act 2017, I can adjust 2,00,000 only.
    Can I carry forward remaining 1,50,000 next year?

  20. Brij Kaul says:

    I have a carried forward short term capital loss from AY 2016-17. How can I set this off against STCG of AY 2017-18.
    I am filing ITR 3 and would be thankful if I can get specific solution.

    Thanks.

    1. Rajesh says:

      You can just subtract the entire STCL (Equity) of last year from this year’s STCG (Equity). However, if you have other capital gains like first LTCG (Debt) or STCG (Debt) as well, then you may use the following sequence for set-off:

      First set-off against LTCG (Debt) (taxed @20%) then STCG (Debt) (taxed as per your slab rate) and then any left over balance against STCG (Equity) (taxed @15%).

      Above sequence will minimise your tax outgo.

  21. madhurima says:

    Hello
    Is it mandatory to set off unabsorbed depreciation every year even if company incuring profit? Or assessee can take its own decision of set off?

  22. Rupjyoti Pathak says:

    Why the MCQs are directly copy pasted from the departmental website of Income Tax, viz., incometaxindia.gov.in ? Can’t you prepare your own set of questions for the reader ? This is ridiculous.

  23. Kishore Kumar says:

    Here the Bangalore and Delhi are operation location, where your business is Owning and operating Horses by One single Assessee, It could be considered as one business so, your winning stakes and Trophies are your revenue at each location will be total revenue against the total expenses at each locations. Accordingly the Profit or loss from Business could be computed.

  24. Krishna says:

    For FY 15-16 I have paid a sum of Rs. 1,00,000/- to my last employer for taking resignation as per employment bond of 3 years. I didn’t completed 3 years of services so I had to pay this amount to them.
    I want to know will this amount be adjusted against my taxable salary?

    1. Varma alluri says:

      There is no such provision,Rule,Law in income tax act 1961 to claim amount paid to employer to break the employment contract.

      Loss Incurred from Income from Salary head doesn’t allow to set off the loss from the same head or other head income.

      In case you need help reach out to us dsssvtax@gmail.com and our experts will assist you.You can also call /whatsapp us : 9052535440.

  25. DEEPAK R CHANG says:

    The House property interest rs 543983 and rental income is rs 200000 the 30% exp rs 60000 the total loss from house property is rs 403983 how much loss can be set off agimnst business income of rs 810000 the dedction u/s 80 c rs 150000
    what will be taxable income and the amt of tax payable for AY 15-16 f y
    1415 pls help me and reply at the earliest

  26. DEEPAK R CHANG says:

    HOUSING LOAN INTERST RS 543983 RENTAL INCOME FROM HOUSE RS 200000 30% EXP OF HOUSE RENT RS 60000 TOTAL LOSS FROM HOUSE PROPERTY RS 403983 HOW MUCH LOSS CAN BE
    SETOFF AGINST BUISNESS INCOME OF RS 810000 THE DEDUCTIONU/S 80 C IS RS 150000
    HOW TAX WILL BE PAYBLE AND HOW MUCH HOSUE PROPERTY LOSS CAN BE ADJUSTED AGNST BUSINSES INCOME PLS REPLY

  27. Naval Agrawal says:

    I have to deposit a return of private limited company for assessment year 2015-16 and I am carrying a unabsorbed depreciaiton loss of Rs. 133357/- from assessment year 2006-07. As you all know that due date for filing of Income tax return has gone. Now my question is that can a claim as set off in the assessment year 15-16 of above unabsorbed depreciation loss.

  28. Umesh Patel says:

    My query is as follows:

    STCG on sale of shares, (STT not paid) Rs. 1,00,000
    STCL on sale of shares, (STT paid) Rs. 60,000

    Can some one show the treatment of the above query?
    Can we set of the loss against the gain arised on sale of shares where STT is not suffered?

  29. raghu says:

    in the FY 2013 – 14 i have incurred losses in share of 60 lakhs in the same year i have sold one of my property for 62 lakhs can i sett of losses against the profit of capital gains of my house property

  30. Kanhaiya Sevlani says:

    Details of income and loss from business as below:-

    A.Y. 2005-06 Loss amounting Rs. 13.00 Crores Return filled on due date U/s 139(1).

    A.Y. 2006-07 Profit amounting Rs. 0.50 Crores return filled on due date U/s 139(1)

    A.Y. 2007-08 Profit amounting Rs. 1.50 Crores return filled after due date U/s 139(1)

    A.Y. 2008-09 Profit Amounting Rs. 3.00 Crores return filled on due date U/s 139(1)

    As the assessee not filled return for A.Y. 2007-08 on due date, whether he can get benefit of loss of earlier year in next A.Y. 2008-09, if return is filled on due date U/s 139(1)?

    Plz. clear the above queries.

    Thanks & Regards
    Kanhaiya Sevlani

  31. Tarak Seta says:

    I Have short term Capital Gain on sale of shares this year and also other Income but total income is below taxable my question is i have short term loss on sale of shares last year this year i have sort term gain but my total income is below taxable it is necessary to set off this year or i carried forward to next year loss which i earn last year

  32. Sayarmal Rekhawat says:

    I had made a short term loss of Rs. 280000/- on sale of Equity shares in F.Y. 2009-10 which i carry forward till date. Now i have made long term profit on sale of property of 285760/- & short term profit on sale of property of Rs. 87500/- both in F.Y. 2013-2014.
    My Query is if above mentioned short term loss on sale of Equity Shares is set off with current year’s long tem profit on sale of Property or not

  33. A Dhar says:

    I am unable to put carry forward loss from house property during pre-construction period in IT Return form using the Java/Excel utility. Can anyone guide me how can I do so.

  34. Ravi Arora says:

    A doctor receives pension & now he is running a hospital and given the First Floor on rent. I want to know that the rental income of the same building & pension can be set off with net loss of the Business or Profession Income.

  35. vinod says:

    I am a salaried person. In 2012 a DDA shop was allotted to me in Delhi. For purchasing it, I took loan from bank for which I am paying Rs.15000/- per month. The shop is lying vacant and there is no income from it till now. On the other hand I am paying installment to bank in which maximum part is interest. Can this loss be set off with my salary income. If yes, how?

  36. hisir says:

    Is it “Mandatory” to submit “Rental agreement” as a landlord to claim “Housing Loan Loss from House Property – letout” for salaried emp?

  37. Rajendra Soni says:

    If someone has positive total income for AY 13-14 but has speculation losses for the year and that person has not filed his return for AY 13-14 within limit of sec. 139(1). even then can he get setoff of the speculation loss in coming years. What is the meaning of words used return of loss at various places does it mean that overall the return should be of that loss or only some losses has to be carried forward though the overall retun has positive total income.
    please advise.

  38. K Baliyan says:

    When house is being constructed, the interest on H loan can not be claimed as deduction- say from salary. Once it is constructed and is in possession, one can deduct home loan interest up to Rs 150000 from Salary income for that year. What about the interest of earlier years when it was not allowed to be deducted? can one still deduct part of that against salary income?
    But the law says that losses carried forward can be set off against income from same head (here house income)?
    Please enlighten.
    Thanks

  39. Praveen says:

    Whether according to Section 71(2) losses under the Head Income from House Property can be sett of with Income earned under head Capital Gain

  40. Abhishek says:

    during previous year 2011-12,Mr Ghosh has income frm house property Rs 210,000 and loss from profession Rs.130,000.
    He wants to set off loss from profession to d extent of Rs. 30,000 only so that he don’t need to pay any tax and carry forward the balance of loss of profession..
    Can Mr.Ghosh do so..??

  41. Hema Bhanushali says:

    Please give solution of following case:-
    Mr. X has salary income he invested that income in some pvt company initially he earned interest out of amount invested in company. Now Company Goes into Liquidation & it’s not able to Pay amount Paid. Can Mr. X claim Loss of amount invested under other sources of income

  42. deepak aggarwal says:

    k .mittal
    your loss is a loss from other sources . if u r not dng the business of purchase or sale of securities. nd u can carry forward upto 8 yrs

  43. deepak aggarwal says:

    the topics available on taxguru is vry helpful & useful. it provides all the required topics in one place .thanks to taxguru .

  44. k.mittal says:

    Tax guro i was invested rs. 100000/ in equity shares of listed companey in 2007. but now companey has closed how maney years i can carrey forwared my lose. [ 4, 8 or 10 years] . if your reply in my mail i shall be highly thankfully toyou.

  45. RT says:

    It is one of the most precise and simple to understand articles on basics of set off that I have read.In short it is carry fwd and set off in a nut shell…
    Thanks.
    Cheers,
    RT

  46. Manoj Pasari says:

    The article is useful. However,
    what would be the sequenace of adjustment for 35AD deduction that was introduced in last budget?

  47. Sanjeev says:

    I really thank you guys for coming up with such topics which are basics and very important for tax planning.

    Thanks for your efforts

    Best Regards,
    Sanjeev

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