Home/ Questions/Q 6144
Next
In Process
Ramesh Sharma
  • 0
Enlightened
Asked: 2021-12-07T22:26:20+05:30 In:

Which loss can be carry forward under income tax act?

  • 0
Which loss can be carry forward under income tax act?
Share

    2 Answers

    1. Beginner

      Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. Following losses can be carried forward under the iRead more

      Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years.

      Following losses can be carried forward under the income tax act 1961

      Losses from House Property

      Losses from Non-Speculative Business (Regular Business) Loss

      Speculative Business Loss

      Specified Business Loss under 35AD

      Capital Losses

      Losses from owning and maintaining race-horses

       

      See less
      • 0
    2. Enlightened Chartered Accountant

      Under the Income Tax Act, 1961, different types of losses can be carried forward for set periods and adjusted against specific incomes. Here’s a summary: 1. Business Losses Carried forward for: 8 assessment years Set-off allowed against: Only business income (not salary, capital gains, or house propRead more

      Under the Income Tax Act, 1961, different types of losses can be carried forward for set periods and adjusted against specific incomes. Here’s a summary:

      1. Business Losses

      • Carried forward for: 8 assessment years
      • Set-off allowed against: Only business income (not salary, capital gains, or house property income).
      • Condition: The income tax return must be filed on or before the due date under Section 139(1).

      2. Speculation Losses (from intra-day trading or derivatives)

      • Carried forward for: 4 assessment years
      • Set-off allowed against: Only speculation profits (not any other income).

      3. Capital Losses (from the sale of assets, shares, or securities)

      • Carried forward for: 8 assessment years
      • Set-off allowed against:
        • Short-Term Capital Loss (STCL): Can be adjusted against both short-term and long-term capital gains.
        • Long-Term Capital Loss (LTCL): Can be adjusted only against long-term capital gains.

      4. Losses from House Property

      • Carried forward for: 8 assessment years
      • Set-off allowed against: Income from house property.

      5. Loss from Owning and Maintaining Race Horses

      • Carried forward for: 4 assessment years
      • Set-off allowed against: Only income from race horses.

      6. Unabsorbed Depreciation

      • Carried forward for: Indefinite years
      • Set-off allowed against: Any income except salary.
      See less
      • 0

    Leave an answer

    You must login to add an answer.

    Need An Account,