India - Income Tax Act 2010 - Saarc

S. 72 I.T. ACT, 1961 1.366under the head “Income from house property” is a loss, such loss in so far as itrelates 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 andset off in the assessment year commencing on the 1st day of April, 1995, and thebalance, if any, in the assessment year commencing on the 1st day of April, 1996,against the income under any head.]37[Carry forward and set off of loss from house property.71B. Where for any assessment year the net result of computation under thehead “Income from house property” is a loss to the assessee and such losscannot be or is not wholly set off against income from any other head of incomein accordance with the provisions of section 71, so much of the loss as has notbeen so set-off or where he has no income under any other head, the whole lossshall, subject to the other provisions of this Chapter, be carried forward to thefollowing assessment year and—(i) be set off against the income from house property assessable for thatassessment year; and(ii) the loss, if any, which has not been set off wholly, the amount of lossnot so set off,shall be carried forward to the following assessment year, not being more thaneight assessment years immediately succeeding the assessment year for whichthe loss was first computed.]Carry forward and set off of business losses.3872. 39 [(1) Where for any assessment year, the net result of the computationunder the head “Profits and gains of business or profession” is a loss to theassessee, not being a loss sustained in a speculation business, and such losscannot be or is not wholly set off against income under any head of income inaccordance with the provisions of section 71, so much of the loss as has not beenso set off or, 40 [* * *] where he has no income under any other head, the whole lossshall, subject to the other provisions of this Chapter, be carried forward to thefollowing assessment year, and—(i) it shall be set off against the profits and gains, if any, of any business orprofession carried on by him and assessable for that assessment year ;41[* * *]37. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.38. See also Circular No. 26 (LXXVI-3), dated 7-7-1955, Circular No. 104, dated 19-2-1973,Circular No. 587, dated 11-12-1990 and Circular No. 5/2009, dated 2-7-2009. For details,see Taxmann’s Master Guide to Income-tax Act.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.39. Substituted by the Finance (No. 2) Act, 1962, w.e.f. 1-4-1962.40. Words ‘where the assessee has income only under the head “Capital gains” relating tocapital assets other than short-term capital assets and has exercised the option under subsection(2) of that section or’ omitted by the Finance Act, 1987, w.e.f. 1-4-1988. In theomitted portion, expression in italics was inserted by the Finance (No. 2) Act, 1967, w.e.f.1-4-1968.41. Proviso to clause (i) omitted by the Finance Act, 1999, w.e.f. 1-4-2000.