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Set off and carry forward
of losses
Made By:-
Manpreet KaurB.com(H)
2 yr.
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Set-off of Losses If the net result for any A.Y. in respect of any
source falling under any head of income is a lossthe assessee shall be entitled to have the amountof such set-off against the income from any other
source under the same head. This is also calledinter-source adjustment. (Sec-70)
Where the net result of computation made for any
assessment year in respect of any head ofincome is a loss,the same can be set-off againstthe income from other heads. (Sec-71)
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Set-off of Losses: At a Glance
Loss Set-off
Loss from houseproperty
Loss from business orprofession
• Income from any otherhouse property.
• Any other head ofincome.
• Income from any other
business or profession.
• Any other head ofincome except salaries.
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Contd.
Loss Set-off
Loss from speculation
Short-term capitalloss
Long-term capital loss
Income fromspeculation
Short-term capitalgain
Long-term capital gain
Long-term capital gain
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Contd.
Loss Set-off
Loss from activity ofowning and
maintaining racehorses
Loss of lottery,crossword puzzles,gambling, card gamesor betting etc.
Income from activityof owning and
maintaining racehorses
Cannot be set-offagainst any income.
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Carry-Forward of Losses
If a loss can not be set-off either under the samehead or under the different heads because of
absence or inadequacy of the income of the sameyear, it may be carried forward and set-off against
the income of the succeeding year.
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Carry-Forward and Set-off of Losses: At a Glance
Loss Set-off
Loss from houseproperty
Loss from business orprofession
Loss from speculation
In following 8 yrs.,income from houseproperty.
In following 8 yrs.,income from businessor profession.
In following 4 yrs.,income fromspeculation.
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Contd.
Loss Set-off
Short-term capitalloss
Long-term capital loss
In following 8 yrs :-
Short-term capitalgain.
Long-term capital gain
• In following 8 yrs.,long-term capital gain.
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Contd.
Loss Set-off
Loss from activity ofowning and
maintaining racehorses
In following 4 yrs.,income from owning
and maintaining racehorses.
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