Losses from certain specified sources falling under the head “Income from other sources”
Set-off of losses from activity of owning & maintaining horse races
Loss from owning & maintaining horse races can be set off only against income from the same activity. If there is no stake money income in a year, the entire expenditure incurred on maintaining race horses will be treated as a loss from that activity.
Carry Forward of losses from activity of owning & maintaining horse races
Losses can be carried forward for up to 4 assessment years, subject to continuation of the activity. Filing of returns by the due date is mandatory, with condonation allowed in specific cases.