30 August 2008
author : Amar Posted On : 8/29/2008 12:42:43 PM Tell me the provisions of Income Tax Act regarding set-off of carried-forward losses E.g. in the year in which loss under the head House Property is incurred it can be set-off against any head but after it has been carried forward, it can only be set-off against Income from house Property.
30 August 2008
Carry forward and set off of loss from house property.
71B. Where for any assessment year the net result of computation under the head “Income from house property” is a loss to the assessee and such loss cannot be or is not wholly set off against income from any other head of income in accordance with the provisions of section 71, so much of the loss as has not been so set-off or where he has no income under any other head, the whole loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year and—
(i) be set off against the income from house property assessable for that assessment year; and
(ii) the loss, if any, which has not been set off wholly, the amount of loss not so set off,
shall be carried forward to the following assessment year, not being more than eight assessment years immediately succeeding the assessment year for which the loss was first computed.]
CAclubindia
