India - Income Tax Act 2010 - Saarc

1.365 CH. VI - AGGREGATION OF INCOME AND SET OFF OF LOSS S. 71A31[Set off of loss from one head against income from another.3271. (1) Where in respect of any assessment year the net result of the computationunder any head of income, other than “Capital gains”, is a loss and theassessee has no income under the head “Capital gains”, he shall, subject to theprovisions of this Chapter, be entitled to 33 have the amount of such loss set offagainst his income, if any, assessable for that assessment year under any otherhead.(2) Where in respect of any assessment year, the net result of the computationunder any head of income, other than “Capital gains”, is a loss and theassessee 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 capitalassets).34[(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 underthe head “Profits and gains of business or profession” is a loss and the assesseehas income assessable under the head “Salaries”, the assessee shall not be entitledto have such loss set off against such income.](3) Where in respect of any assessment year, the net result of the computationunder the head “Capital gains” is a loss and the assessee has income assessableunder any other head of income, the assessee shall not be entitled to have suchloss set off against income under the other head.]35[(4) Where the net result of the computation under the head “Income fromhouse property” is a loss, in respect of the assessment years commencing on the1st day of April, 1995 and the 1st day of April, 1996, such loss shall be first set offunder sub-sections (1) and (2) and thereafter the loss referred to in section 71Ashall be set off in the relevant assessment year in accordance with the provisionsof that section.]36[Transitional provisions for set off of loss under the head “Income from houseproperty”.71A. Where in respect of the assessment year commencing on the 1st day ofApril, 1993 or the 1st day of April, 1994, the net result of the computation31. Substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1992. Prior to substitution, section71 was amended by the Finance (No. 2) Act, 1962, w.e.f. 1-4-1962, Finance Act, 1987, w.e.f.1-4-1988 and the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.32. See also Circular No. 26 (LXXVI-3), dated 7-7-1955, Circular No. 104, dated 19-2-1973 andCircular No. 587, dated 11-12-1990. For details, see Taxmann’s Master Guide to IncometaxAct.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.33. For the meaning of the expression “be entitled to”, see Taxmann’s Direct Taxes Manual,Vol. 3.34. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005.35. Substituted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to substitution, sub-section (4)was inserted by the Finance Act, 1992, w.e.f. 1-4-1993.36. Substituted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to substitution, section 71A wasinserted by the Finance Act, 1992, w.e.f. 1-4-1993.