Do the provisions pertaining to set-off and carry forward of losses confuse you too?
If yes, then you have arrived at the right place that will clear most of your confusion as I have here tried to summarise the sections in the simplest way possible.
Few points to understand before you start going through the table.
The losses are to be set-off in the sequence mentioned:
- first the losses are set-off under the same head of income
- second from any other head of income
- residual to be carried forward to further assessment years
| Heads of Income | |||||||
|---|---|---|---|---|---|---|---|
| Salary | House Property | Business/ Profession | Capital Gains | Other Sources | |||
| S.T.C.G | L.T.C.G | ||||||
| 1 | Loss u/h House Property | ||||||
| Section 70 | √ | ||||||
| Section 71 (Max. Rs. 2 Lacs) | √ | √ | √ | √ | √
(except Casual Income) |
||
| Section 71B (c/fd – Max. 8 yrs) | √ | ||||||
| 2 | Loss u/h Business / Profession | ||||||
| Section 70 | √ | ||||||
| Section 71 (Max. Rs. 2 Lacs) | √ | √ | √ | √
(except Casual Income) |
|||
| Section 72 (c/fd – Max. 8 yrs) | √ | ||||||
| 3 | Loss u/h Other Sources | ||||||
| Section 70 | √
(except Casual Income) |
||||||
| Section 71 | √ | √ | √ | √ | √ | ||
| c/fd – Not Allowed | |||||||
| 4 | Loss u/h Capital Gains – Short Term | ||||||
| Section 70 | √ | √ | |||||
| Section 74 (c/fd – Max. 8 yrs) | √ | √ | |||||
| 5 | Loss u/h Capital Gains – Long Term | ||||||
| Section 70 | √ | ||||||
| Section 74 (c/fd – Max. 8 yrs) | √ | ||||||
| 6 | Loss from Owning & Maintaining (O/M) Race Horses | ||||||
| Section 74A | √
(only from O/M race horses) |
||||||
| Section 74A (c/fd – Max. 4 yrs) | √
(only from O/M race horses) |
||||||
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