Loss Set Off & Carry Forward provision at a Glance:

Loss Set Off & Carry Forward provision at a Glance

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Loss Set Off & Carry Forward provision at a Glance:

1. Salary:- losses not possible.
2. House property:
• # Losses can be set off against any income under any head in current year up to Rs. 2 lakhs
• #  Losses can be carried forward for 8 AY’s and set off against Income from House property.
3. Business Loss:-
• # Loss of owning and maintaining race horses can be set off against only income from same source & It can be c/f for 4 years only.
• # Speculative Loss can be set off only against income from same source & it can be c/f for 4 years only.
• # Loss of Specific Business u/s 35AD can be set off only against same source of income & it can be c/f for unlimited year’s.
• # Other losses of PGBP can be set off against any income under any head except salary income in current year.  It can be c/f for 8 years and set off against any business income in subsequent year’s.
4. Capital Loss:
• # LTCG loss can be set off only against LTCG.
• # STCG loss can be set off against both STCG as well as LTCG.
• # Capital Loss can be c/f for 8 years.
5. Other source:
• # Set off is available against any income under any head in current year.
• # It cannot be carried forward.
Notes-
1. Loss of house property and unabsorbed depreciation can be carried forward even if ROI is filled after due date u/s 139(1).
2. Losses u/s 72, 73, 73A, 74, 74A can’t be c/f if ROI is filled after due date u/s 139(1).

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