Income Tax Act, 2025
Section 5: Subs. by s. 22, ibid., for section 71A (w.e.f. 11995).
5. Subs. by s. 22, ibid., for section 71A (w.e.f. 11995).
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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.]
1[71B.Carry forward and set off of loss from house property.—Where for any assessment year the
net result of computation under the head “Income from house property” is a loss to the assessee and such
loss cannot be or is not wholly set off against income from any other head of income in accordance with
the provisions of section 71, so much of the loss as has not been so set-off or where he has no income
under any other head, the whole loss shall, subject to the other provisions of this Chapter, be carried
forward to the following assessment year and—
(i) be set off against the income from house property assessable for that assessment year; and
(ii) the loss, if any, which has not been set off wholly, the amount of loss not so set off,
shall be carried forward to the following assessment year, not being more than eight assessment years
immediately succeeding the assessment year for which the loss was first computed.]
72.Carry forward and set off of business losses.—2[(1) Where for any assessment year, the net
result of the computation under the head “Profits and gains of business or profession” is a loss to the
assessee, not being a loss sustained in a speculation business, and such loss cannot be or is not wholly set
off against income under any head of income in accordance with the provisions of section 71, so much of
the loss as has not been so set off or, 3*** where he has no income under any other head, the whole loss
shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year,
and—
(i) it shall be set off against the profits and gains, if any, of any business or profession carried on
by him and assessable for that assessment year;
4* * * * *
(ii) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried
forward to the following assessment year and so on:]
5[Provided that where the whole or any part of such loss is sustained in any such business as is
referred to in section 33B which is discontinued in the circumstances specified in that section, and,
thereafter, at any time before the expiry of the period of three years referred to in that section, such
business is re-established, reconstructed or revived by the assessee, so much of the loss as is attributable
to such business shall be carried forward to the assessment year relevant to the previous year in which the
business is so re-established, reconstructed or revived, and—
(a) it shall be set off against the profits and gains, if any, of that business or any other business
carried on by him and assessable for that assessment year; and
of sub-section
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.]
1[71B.Carry forward and set off of loss from house property.—Where for any assessment year the
net result of computation under the head “Income from house property” is a loss to the assessee and such
loss cannot be or is not wholly set off against income from any other head of income in accordance with
the provisions of section 71, so much of the loss as has not been so set-off or where he has no income
under any other head, the whole loss shall, subject to the other provisions of this Chapter, be carried
forward to the following assessment year and—
be set off against the income from house property assessable for that assessment year; and
the loss, if any, which has not been set off wholly, the amount of loss not so set off,
shall be carried forward to the following assessment year, not being more than eight assessment years
immediately succeeding the assessment year for which the loss was first computed.]
72.Carry forward and set off of business losses.—2[
Where for any assessment year, the net
result of the computation under the head “Profits and gains of business or profession” is a loss to the
assessee, not being a loss sustained in a speculation business, and such loss cannot be or is not wholly set
off against income under any head of income in accordance with the provisions of section 71, so much of
the loss as has not been so set off or, 3*** where he has no income under any other head, the whole loss
shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year,
and—
it shall be set off against the profits and gains, if any, of any business or profession carried on
by him and assessable for that assessment year;
4* * * * *
if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried
forward to the following assessment year and so on:]
5[Provided that where the whole or any part of such loss is sustained in any such business as is
referred to in section 33B which is discontinued in the circumstances specified in that section, and,
thereafter, at any time before the expiry of the period of three years referred to in that section, such
business is re-established, reconstructed or revived by the assessee, so much of the loss as is attributable
to such business shall be carried forward to the assessment year relevant to the previous year in which the
business is so re-established, reconstructed or revived, and—
it shall be set off against the profits and gains, if any, of that business or any other business
carried on by him and assessable for that assessment year; and