www.Aaptaxlaw.com
 
 
 

What is Set off of loss from one head against income from another?. What is Transitional provisions for set off of loss under the head "Income from house property"? Section 71 and 71A of Income Tax Act 1961

Set off of loss from one head against income from another and Transitional provisions for set off of loss under the head "Income from house property" are defined under section 71 and 71A of Income Tax Act 1961. Provision under these Sections are:

Section 71 of Income Tax Act "Set off of loss from one head against income from another"

Section 71. (1) Where in respect of any assessment year the net result of the computation under any head of income, other than "Capital gains", is a loss and the assessee has no income under the head "Capital gains", he shall, subject to the provisions of this Chapter, be entitled to have the amount of such loss set off against his income, if any, assessable for that assessment year under any other head.

 

(2) Where in respect of any assessment year, the net result of the computation under any head of income, other than "Capital gains", is a loss and the assessee has income assessable under the head "Capital gains", such loss may, subject to the provisions of this Chapter, be set off against his income, if any, assessable for that assessment year under any head of income including the head "Capital gains" (whether relating to short-term capital assets or any other capital assets).

(2A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment year, the net result of the computation under the head "Profits and gains of business or profession" is a loss and the assessee has income assessable under the head "Salaries", the assessee shall not be entitled to have such loss set off against such income.
(3) Where in respect of any assessment year, the net result of the computation under the head "Capital gains" is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to have such loss set off against income under the other head.
(4) Where the net result of the computation under the head "Income from house property" is a loss, in respect of the assessment years commencing on the 1st day of April, 1995 and the 1st day of April, 1996, such loss shall be first set off under sub-sections (1) and (2) and thereafter the loss referred to in section 71A shall be set off in the relevant assessment year in accordance with the provisions of that section.

Section 71A of Income Tax Act "Transitional provisions for set off of loss under the head Income from house property"

Section 71A. Where in respect of the assessment year commencing on the 1st day of April, 1993 or the 1st day of April, 1994, the net result of the computation under the head "Income from house property" is a loss, such loss in so far as it relates to interest on borrowed capital referred to in clause (vi) of sub-section (1) of section 24 and to the extent it has not been set off shall be carried forward and set off in the assessment year commencing on the 1st day of April, 1995, and the balance, if any, in the assessment year commencing on the 1st day of April, 1996, against the income under any head.

Income Tax Act 1961

What is Set off of loss from one head against income from another?. What is Transitional provisions for set off of loss under the head "Income from house property"? Section 71 and 71A of Income Tax Act 1961

What is Carry forward and set off of loss from house property? Section 71B of Income Tax Act 1961

What is Carry forward and set off of business losses? Section 72 of Income Tax Act 1961

What are the Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc? Section 72A of Income Tax Act 1961

What are the Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation of banking company in certain cases? Section 72AA of Income Tax Act 1961

What are the Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in business reorganisation of co-operative banks? Section 72AB of Income Tax Act 1961

What is the treatment of Losses in speculation business? Section 73 of Income Tax Act 1961

What is Carry forward and set off of losses by specified business? What is Losses under the head "Capital gains? Section 73A and 74 of Income Tax Act 1961

What is Losses from certain specified sources falling under the head "Income from other sources"? Section 74A of Income Tax Act 1961

What is Losses of firms? How to Carry forward and set off of losses in case of change in constitution of firm or on succession? Section 75 and 78 of Income Tax Act 1961

What is Carry forward and set off of losses in the case of certain companies Submission of return for losses? Section 79 and 80 of Income Tax Act 1961

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap