Income Tax Act, 2025
Section 2: Ins. by Act 22 of 2007, s. 21 (w.e.f. 12008).
2. Ins. by Act 22 of 2007, s. 21 (w.e.f. 12008).
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(3) The amount of set-off of the accumulated loss and unabsorbed depreciation, if any, allowable to
the assessee being a resulting co-operative bank shall be,—
(i) the accumulated loss or unabsorbed depreciation of the demerged co-operative bank if the
whole of the amount of such loss or unabsorbed depreciation is directly relatable to the undertakings
transferred to the resulting co-operative bank; or
(ii) the amount which bears the same proportion to the accumulated loss or unabsorbed
depreciation of the demerged co-operative bank as the assets of the undertaking transferred to the
resulting co-operative bank bears to the assets of the demerged co-operative bank if such accumulated
loss or unabsorbed depreciation is not directly relatable to the undertakings transferred to the resulting
co-operative bank.
(4) The Central Government may, for the purposes of this section, by notification in the Official
Gazette, specify such other conditions as it considers necessary, other than those prescribed under subclause (iii) of clause (b) of sub-section (2), to ensure that the business reorganisation is for genuine
business purposes.
(5) The period commencing from the beginning of the previous year and ending on the date
immediately preceding the date of business reorganisation, and the period commencing from the date of
such business reorganisation and ending with the previous year shall be deemed to be two different
previous years for the purposes of set off and carry forward of loss and allowance for depreciation.
(6) In a case where the conditions specified in sub-section (2) or notified under sub-section (4) are not
complied with, the set off of accumulated loss or unabsorbed depreciation allowed in any previous year to
the successor co-operative bank shall be deemed to be the income of the successor co-operative bank
chargeable to tax for the year in which the conditions are not complied with.
(7) For the purposes of this section,—
(a) “accumulated loss” means so much of loss of the amalgamating co-operative bank or the
demerged co-operative bank, as the case may be, under the head “Profits and gains of business or
profession” (not being a loss sustained in a speculation business) which such amalgamating cooperative bank or the demerged co-operative bank, would have been entitled to carry forward and setoff under the provisions of section 72 as if the business reorganisation had not taken place;
(b) “unabsorbed depreciation” means so much of the allowance for depreciation of the
amalgamating co-operative bank or the demerged co-operative bank, as the case may be, which
remains to be allowed and which would have been allowed to such bank as if the business
reorganisation had not taken place;
(c) the expressions “amalgamated co-operative bank”, “amalgamating co-operative bank”,
“amalgamation”, “business reorganisation”, “co-operative bank”, “demerged co-operative bank”,
“demerger”, “predecessor co-operative bank”, “successor co-operative bank” and “resulting
co-operative bank” shall have the meanings respectively assigned to them in section 44DB.]
73. Losses in speculation business.—(1) Any loss, computed in respect of a speculation business
carried on by the assessee, shall not be set off except against profits and gains, if any, of another
speculation business.
(2) Where for any assessment year any loss computed in respect of a speculation business has not
been wholly set off under sub-section (1), so much of the loss as is not so set off or the whole loss where
the assessee had no income from any other speculation business, 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 speculation business carried on
by him assessable for that assessment year; and
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(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 soon.
(3) In respect of allowance on account of depreciation or capital expenditure on scientific research,
the provisions of sub-section (2) of section 72 shall apply in relation to speculation business as they apply
in relation to any other business.
(4) No loss shall be carried forward under this section for more than 1[four assessment years]
immediately succeeding the assessment year for which the loss was first computed.
2[Explanation.—Where any part of the business of a company (3[other than a company whose gross
total income consists mainly of income which is chargeable under the heads “Interest on securities”,
“Income from house property”, “Capital gains” and “Income from other sources”], or a company 4[the
principal business of which is the business of trading in shares or banking] or the granting of loans and
advances) consists in the purchase and sale of shares of other companies, such company shall, for the
purposes of this section, be deemed to be carrying on a speculation business to the extent to which the
business consists of the purchase and sale of such shares.]
5[73A. Carry forward and set off of losses by specified business.—(1) Any loss, computed in
respect of any specified business referred to in section 35AD shall not be set off except against profits and
gains, if any, of any other specified business.
(2) Where for any assessment year any loss computed in respect of the specified business referred to
in sub-section (1) has not been wholly set off under sub-section (1), so much of the loss as is not so set off
or the whole loss where the assessee has no income from any other specified business, 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 specified business carried on by
him assessable for that assessment year; and
(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.]
6[74. Losses under the head “Capital gains”.—7[(1) Where in respect of any assessment year, the
net result of the computation under the head “Capital gains” is a loss to the assessee, the whole loss shall,
subject to the other provisions of this Chapter, be carried forward to the following assessment year, and—
(a) in so far as such loss relates to a short-term capital asset, it shall be set off against income, if
any, under the head “Capital gains” assessable for that assessment year in respect of any other capital
asset;
(b) in so far as such loss relates to a long-term capital asset, it shall be set off against income, if
any, under the head “Capital gains” assessable for that assessment year in respect of any other capital
asset not being a short-term capital asset;
(c) 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.]
(2) No loss shall be carried forward under this section for more than eight assessment years
immediately succeeding the assessment year for which the loss was first computed.
The amount of set-off of the accumulated loss and unabsorbed depreciation, if any, allowable to
the assessee being a resulting co-operative bank shall be,—
the accumulated loss or unabsorbed depreciation of the demerged co-operative bank if the
whole of the amount of such loss or unabsorbed depreciation is directly relatable to the undertakings
transferred to the resulting co-operative bank; or
the amount which bears the same proportion to the accumulated loss or unabsorbed
depreciation of the demerged co-operative bank as the assets of the undertaking transferred to the
resulting co-operative bank bears to the assets of the demerged co-operative bank if such accumulated
loss or unabsorbed depreciation is not directly relatable to the undertakings transferred to the resulting
co-operative bank.
The Central Government may, for the purposes of this section, by notification in the Official
Gazette, specify such other conditions as it considers necessary, other than those prescribed under subclause
of clause
of sub-section
The period commencing from the beginning of the previous year and ending on the date
immediately preceding the date of business reorganisation, and the period commencing from the date of
such business reorganisation and ending with the previous year shall be deemed to be two different
previous years for the purposes of set off and carry forward of loss and allowance for depreciation.
In a case where the conditions specified in sub-section
or notified under sub-section
are not
complied with, the set off of accumulated loss or unabsorbed depreciation allowed in any previous year to
the successor co-operative bank shall be deemed to be the income of the successor co-operative bank
chargeable to tax for the year in which the conditions are not complied with.
For the purposes of this section,—
“accumulated loss” means so much of loss of the amalgamating co-operative bank or the
demerged co-operative bank, as the case may be, under the head “Profits and gains of business or
profession” (not being a loss sustained in a speculation business) which such amalgamating cooperative bank or the demerged co-operative bank, would have been entitled to carry forward and setoff under the provisions of section 72 as if the business reorganisation had not taken place;
“unabsorbed depreciation” means so much of the allowance for depreciation of the
amalgamating co-operative bank or the demerged co-operative bank, as the case may be, which
remains to be allowed and which would have been allowed to such bank as if the business
reorganisation had not taken place;
the expressions “amalgamated co-operative bank”, “amalgamating co-operative bank”,
“amalgamation”, “business reorganisation”, “co-operative bank”, “demerged co-operative bank”,
“demerger”, “predecessor co-operative bank”, “successor co-operative bank” and “resulting
co-operative bank” shall have the meanings respectively assigned to them in section 44DB.]
73. Losses in speculation business.—
Any loss, computed in respect of a speculation business
carried on by the assessee, shall not be set off except against profits and gains, if any, of another
speculation business.
Where for any assessment year any loss computed in respect of a speculation business has not
been wholly set off under sub-section
it shall be set off against the profits and gains, if any, of any speculation business carried on
by him assessable for that assessment year; and
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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 soon.
In respect of allowance on account of depreciation or capital expenditure on scientific research,
the provisions of sub-section
of section 72 shall apply in relation to speculation business as they apply
in relation to any other business.
No loss shall be carried forward under this section for more than 1[four assessment years]
immediately succeeding the assessment year for which the loss was first computed.
2[Explanation.—Where any part of the business of a company (3[other than a company whose gross
total income consists mainly of income which is chargeable under the heads “Interest on securities”,
“Income from house property”, “Capital gains” and “Income from other sources”], or a company 4[the
principal business of which is the business of trading in shares or banking] or the granting of loans and
advances) consists in the purchase and sale of shares of other companies, such company shall, for the
purposes of this section, be deemed to be carrying on a speculation business to the extent to which the
business consists of the purchase and sale of such shares.]
5[73A. Carry forward and set off of losses by specified business.—
Any loss, computed in
respect of any specified business referred to in section 35AD shall not be set off except against profits and
gains, if any, of any other specified business.
Where for any assessment year any loss computed in respect of the specified business referred to
in sub-section
has not been wholly set off under sub-section
it shall be set off against the profits and gains, if any, of any specified business carried on by
him assessable for that assessment year; and
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.]
6[74. Losses under the head “Capital gains”.—7[
Where in respect of any assessment year, the
net result of the computation under the head “Capital gains” is a loss to the assessee, the whole loss shall,
subject to the other provisions of this Chapter, be carried forward to the following assessment year, and—
in so far as such loss relates to a short-term capital asset, it shall be set off against income, if
any, under the head “Capital gains” assessable for that assessment year in respect of any other capital
asset;
in so far as such loss relates to a long-term capital asset, it shall be set off against income, if
any, under the head “Capital gains” assessable for that assessment year in respect of any other capital
asset not being a short-term capital asset;
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.]
No loss shall be carried forward under this section for more than eight assessment years
immediately succeeding the assessment year for which the loss was first computed.