Important F & Q Related to carry forward and set off of house property and speculative business losses ?

What are the provisions framed under the Income-tax Act in relation to carry forward and set off of house property loss?

​​​​​If loss under the head “Income from house property” cannot be fully adjusted in the year in which such loss is incurred. then unadjusted loss can be carried forward to next year.

​​​The set-off of loss from house property against  other source Income is restricted to 2 lakh rupees per annum.

​​In the subsequent years(s) such loss can be adjusted only against income chargeable to tax under the head “Income from house property”.
Such loss can be carried forward for eight years immediately succeeding the year in which the loss is incurred.

Loss under the head “Income from house property” can be carried forward even if the return of income/loss of the year in which loss is incurred is not furnished on or before the due date of furnishing the return, as prescribed under section 139(1) of Income Tax Act​​​​.​

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What are the provisions framed under the Income-tax law in relation to carry forward and set off of loss from speculative business?

​​​​If loss of any speculative business cannot be fully adjusted in the year in which it is incurred, then the unadjusted loss can be carried forward for making adjustment in the next year. In the subsequent year(s) such loss can be adjusted only against income from speculative business (may be same or any other speculative business).

Loss from speculative business can be carried forward only if the return of income/loss of the year in which loss is incurred is furnished on or before the due date of furnishing the return, as prescribed under section 139(1) of Income Tax Act​.

Such loss can be carried forward for four years immediately succeeding the year in which the loss is incurred.

Above provisions are not applicable in case of unabsorbed depreciation of speculative business (provisions relating to unabsorbed depreciation are discussed later).​

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