Income Tax Act, 2025
Section 5: Subs. by Act 20 of 2002, s. 27, for section 70 (w.e.f. 12003).
5. Subs. by Act 20 of 2002, s. 27, for section 70 (w.e.f. 12003).
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(2) Where the result of the computation made for any assessment year under sections 48 to 55in
respect of any short-term capital asset is a loss, the assessee shall be entitled to have the amount of such
loss set off against the income, if any, as arrived at under a similar computation made for the assessment
year in respect of any other capital asset.
(3) Where the result of the computation made for any assessment year under sections 48 to 55 in
respect of any capital asset (other than a short-term capital asset) is a loss, the assessee shall be entitled to
have the amount of such loss set off against the income, if any, as arrived at under a similar computation
made for the assessment year in respect of any other capital asset not being a short-term capital asset.]
1[71.Set off of loss from one head against income from another.—(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).
2[(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.]
3[(3A) 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 “Income from house property” is a
loss and the assessee has income assessable under any other head of income, the assessee shall not be
entitled to set off such loss, to the extent the amount of the loss exceeds two lakh rupees, against income
under the other head.]
4[(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.]
5[71A.Transitional provisions for set off of loss under the head “Income from house
property”.—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
Where the result of the computation made for any assessment year under sections 48 to 55in
respect of any short-term capital asset is a loss, the assessee shall be entitled to have the amount of such
loss set off against the income, if any, as arrived at under a similar computation made for the assessment
year in respect of any other capital asset.
Where the result of the computation made for any assessment year under sections 48 to 55 in
respect of any capital asset (other than a short-term capital asset) is a loss, the assessee shall be entitled to
have the amount of such loss set off against the income, if any, as arrived at under a similar computation
made for the assessment year in respect of any other capital asset not being a short-term capital asset.]
1[71.Set off of loss from one head against income from another.—
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.
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).
2[
Notwithstanding anything contained in sub-section
or sub-section
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.]
3[
Notwithstanding anything contained in sub-section
or sub-section
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
and
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.]
5[71A.Transitional provisions for set off of loss under the head “Income from house
property”.—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