Set Off and Carry Forward of Losses

If income is taxed under income tax act then losses also can be adjusted in other income heads. Set off means adjustment of a loss against income under other sources/heads. You can also carry forward losses if you have not any other income. Here is the provisions related to set off and carry forward of losses. We will discuss these provisions one by one.

  1. Set Off within the same head of income u/s 70
  2. Set off against income under another head u/s 71
  3. Set off & carry forward losses from house property u/s 71B
  4. Set off and carry forward business loss u/s 72
  5. Set off and carry forward capital gains u/s 74
  6. Losses in speculation business
  7. Loss from the activity of owning and maintaining race horses u/s 74A
  8. Carry forward and set off of  losses in case of certain companies
  9. Carry forward and set off of losses in case of change in constitution of firm or on succession
  10. Exception to the rule that the assessee must be the same
  11. Exception to the rule that losses can be carried forward for eight assessment year
  12. Table Chart for Set off and Carry Forward of Losses

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