loss set off

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manish (Querist)
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06 April 2011 please confirm whether loss under the house property and business profession can be set off against casual income.
please also tell me about the section no.

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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07 April 2011 If by casual income you mean to say income from other sources then it can be adjusted.

manish

manish (Querist)
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07 April 2011 by casual income i meant winnings from lottery puzzles races etc that are taxable at 30%

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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03 August 2024 Here’s the information regarding the set-off of losses against casual income:

### **1. Set-Off of Losses Against Casual Income**

#### **House Property Loss**
- **Section Reference:** Section 71B of the Income Tax Act.
- **Set-Off:** Loss from house property can be set off against income from other heads of income, except for casual income like winnings from lotteries, puzzles, races, etc.

#### **Business or Profession Loss**
- **Section Reference:** Section 71 of the Income Tax Act.
- **Set-Off:** Loss from business or profession can be set off against income from other heads of income, except for casual income. However, if the loss is from a speculative business, it can only be set off against income from speculative business.

### **2. Casual Income**

- **Section Reference:** Casual income, such as winnings from lotteries, puzzles, races, etc., is covered under Section 115BB of the Income Tax Act. These are taxed at a flat rate of 30% (plus applicable surcharge and cess).

- **Set-Off:** Casual income cannot be set off against losses from house property or business/profession. Casual income is taxed separately and does not allow for the set-off of other types of losses.

### **Summary**

- **House Property Loss:** Can be set off against other heads of income but not against casual income.
- **Business Loss:** Can be set off against other heads of income (except casual income) and specifically against business income, including speculative business income.

### **Additional Notes**

- **Carry Forward:** If the losses cannot be fully set off in the current year, they may be carried forward to subsequent years for set-off as per the provisions of the Income Tax Act. The carry-forward of losses is subject to specific conditions and time limits.

- **Filing of Return:** Ensure to file your income tax return within the due date to claim the benefit of set-off and carry-forward of losses.

For detailed and specific advice, especially related to the computation and filing, consulting a tax professional is advisable.

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