Table Chart of Set Off & Carry Forward of Losses under Income Tax Act

Table of Set off and Carry Forward Losses


Type of loss to be carried forward to next year(s)

Profit against which carried forward loss can be set off in next year(s)

For how many years loss can be carried forward

Should the business be continued

Is it necessary to submit return of loss in time

1.House Property LossIncome under the head Income from House Property8 yearsNot ApplicableNo
2.Speculation LossSpeculation Profits4 yearsNot necessaryYes
3.Non speculation business loss
3.1On account of unabsorbed depreciation capital expenditure on scientific research and family planningAny income except salary incomeNo time limitNot necessaryNo
3.2Loss from a specified business under section 35ADIncome from a specified business under section 35ADNo time limitNot necessaryYes
3.3Other remaining business lossAny business profit (whether from speculation or otherwise)8 yearsNot necessaryYes
4.Capital Loss
4.1Short term Capital LossAny income under the head “Capital Gains”8 yearsNot necessaryYes
4.2Long term Capital LossLong Term Capital Gains8 yearsNot necessaryYes
5.Loss from the activity of owning and maintaining race horsesIncome from the activity of owning and maintaining race horses4 yearsYesYes


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