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Loss in case of house property.

10 August 2021

I filed ITR 1 for the preceding year and although there was loss under house property i didn't claim it since i filed ITR 1. Now i have income under the head house property. Can i claim the losses of preceding year if i have not carried it forward by filing ITR 2 in the preceding year? No where in the income tax act it is written that loss under hoss property will be claimed only by filing the prescribed forms. Interpretation of almost all tax experts is that tax treatment of loss under house property is similar to tax treatment of unabsorbed depreciation.

Please give your answers with reference to section 71B, 139, 80 or any other relevant sections, notifications, rules, circular, case law.
Thanks in advance.

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4 Replies

madhura (dombivli) (50 Points)
Replied 10 August 2021

I think You can't set off that loss in current year as u have not carried forward it in last P.Y. it means loss can be set off in C.Y.only if it is carried f/w in last year

Mahesh Shah (2299 Points)
Replied 10 August 2021

To claim set off. there must be carry forward loss

Mahesh Balanthimugaru (Article Assistant) (85 Points)
Replied 10 August 2021

Section 80 provides the class of incomes the losses relates to which cannot be set off if return is filed belatedly. It specifically excludes income from house property. It implies that losses under the head House property are allowed to be set off even if return is filed belatedly. It again implies that for set off of any losses filing of return of income is mandatory.

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