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Loss from house property head

SHAAN (CA) (47 Points)

24 June 2019

please help regarding set of order of current year losses of house property with other head of income, for example i have loss from house property Rs 50000 i have income from short term capital and salary then for getting benefit to assesses i want to set of losses from house property first with short term capital and then after with salary but IT department send order under sec 143(1) that first income should be set off with salary then with short term capital gain

please share your review, thank in advance, early response with be highly appreciated

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6 Replies

shathish b (7 Points)
Replied 24 June 2019

as per my knowledge loss from house property can be setoff only against income from salary only

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Gauthami (Student CA Final ) (431 Points)
Replied 24 June 2019

as per sec 71 loss from house property can be set off against income from other heads including capital gains

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hariprasad (chennai) (36 Points)
Replied 24 June 2019

Yes.. loss from house property can be adjusted with in limit of 2,00,000 balance should be carry forward

Gauthami (Student CA Final ) (431 Points)
Replied 24 June 2019

as per my knowledge we can set off HP loss against other heads in any order which is beneficial to assessee...there is no such rule that it should be first set off against salary income only

Saurav Kumar (6 Points)
Replied 24 June 2019

set off of losses should be in order to the head income from sources as per IT Act
sources.... Income from Salary, House property capital gains, business loss
If an A' have adequate salary income, HP loss should be set off with salary income.
Now come to the Capital gains, If afore said condition not following to the A' , HP losses can be set off with any source of capital gains .

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 25 June 2019

1. There is no specific provision explaining the order in which the current year loss should be set off in case of inter-head adjustments.
2. Therefore, it shows that it can be set off in a way which is beneficial to the assessee.
3. Those sections which merely acts as machinery for collection of tax should be construed liberally and it should not be interpreted strictly. Refer case law - Gursahai Saigal vs. CIT, the point is not to burden the assessee but to curb tax evasion or tax avoidance.
4. This view can be used as a point of argument while replying to A.O.
Please correct me if the above interpretation has an alternative view.

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