A Person may incur loss from a source in a year. Under the Income tax Act concession is available to such person incurring loss.
There are provisions for set-off of such loss against income from any other source or any other head of income.
Further if the loss cannot be set-off in the same year, it can be carried forward to subsequent years for set-off.
Income Head |
Nature of Loss |
Set off in Same Assessment Year |
Carried forward to Subsequent Assessment Year |
No of Years for which it can be carried forward |
Income from House Property |
House Property
Let Out Property Self Occupied Property
|
Income from Any Head of Income. |
Only against Income from House Property. |
8 |
Speculation Business |
Speculation Loss
|
Only against Speculation Profit. |
Only against Speculation Profit. |
4 |
Other Business or Profession |
Any Loss from Business or Profession other than Speculation Loss and Unabsorbed Depreciation
|
Any Income except Salary. |
Only against Profit or Gains from business or Profession. |
8 |
Capital Gains |
Long Term Capital Gains
|
Only against Long term Capital Gains. |
Only against Long term Capital Gains. |
8 |
Capital Gains |
Short Term Capital Gains
|
Only against Capital Gains (Both Short Term & Long Term). |
Only against Capital Gains (Both Short Term & Long Term). |
8 |
Other Sources |
Income from owning and maintaining Race Horses
|
Only against Income from owning and maintaining Race Horses. |
Only against Income from owning and maintaining Race Horses. |
4 |
Other Sources |
Income from Other Sources
|
Any Income. |
No Carry Forward |
NA |
Profit or Gains from Business or Profession |
Unabsorbed Depreciation
|
Any Head of Income except Salary. |
Any Head of Income except Salary. |
No time limit. Shall be carried forward to Subsequent assessment year and shall be deemed to be the Depreciation of that year. |
Profit or Gains from Business or Profession |
Scientific and Research Expenditure
|
Any Income |
Shall be carried forward to Subsequent assessment year and shall be deemed to be the Scientific ans Research Expenditure of that year. |
NA |
Profit or Gains from Business or Profession |
Prospecting Expenditure (Installment)
|
NA |
Shall be carried forward to Subsequent assessment year and shall be deemed to be the Installment of that year. |
Can be carried forward upto the 10th assessment year reckoned from the year of commercial production. |
Profit or Gains from Business or Profession |
Family Planning Expenditure
|
NA |
Shall be carried forward to Subsequent assessment year and shall be deemed to be the Family Planning Expenditure of that year. |
NA |
