Set-off and carry forward of losses
According to section 70 of the Act, if the assessee has incurred a loss from any source under a particular head of income, such loss can be set-off against the income from the same head of income. This is an intra-head adjustment of loss which must be set-off in the same assessment year.
If the loss from a particular assessment year cannot be wholly set-off, the loss remaining unadjusted can be carried forward to the next assessment year. Loss which is carried forward can be set-off against the same head of income. In other words, the inter-head adjustment of loss is not available when the loss is carried forward (Section 71 of the Act).
Intra-head and inter-head adjustment of losses
| Section | Nature of loss to be carried forward | Income against which the brought forward loss can be set off in the subsequent years | Maximum permissible period from the end of the relevant assessment year for carry forward of losses |
| 71B | Unabsorbed loss from house property | Income from house property | 8 assessment years
According |
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Web page updated on 17 Mar 2025 14:03