Set Off And Carry Forward Of Losses

Poojitha Raam Vinay | Last updated: 20 September 2025

Save Share

Quick Summary

The article explains the concepts of setting off and carrying forward losses for tax purposes in India. It details how losses from one source or year can be adjusted against income in the same or future years. The rules for intra-head (within the same income head) and inter-head (across different income heads) set-off are explained, along with specific restrictions for different types of losses like business, capital, and house property losses. It also covers the carry-forward periods and conditions, including the crucial requirement of timely return filing, and highlights recent amendments from the Finance Bill 2025 concerning amalgamations and shareholding changes in closely held companies.

Set off and Carry forward of losses refer to adjusting losses incurred under one head of income or in one year against income under the same or another head, either in the same year (set off) or in future years (carry forward). Set Off of Losses Intra-head Set Off (Section 70) Loss from one source of income can be set off against income from another source under the same head. Example: Loss from one house property can be adjusted against income from another house property.

Daily Limit Reached

You have reached your daily limit of 2 Free Articles

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Articles Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

73 Views Comment Share Income Tax Report

About the Author

Poojitha Raam Vinay

Practice

I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

View Articles

Comments :