Loss under the Head of PGBP Introduction Business losses may arise as speculative, non-speculative, or specified business losses. Provisions regulate the set-off against other incomes and the carry-forward period for unadjusted losses. Set-off and Carry-forward of Losses Set-off:Adjusting losses against income in the same assessment year. o Intra-head Adjustment: Loss from one business source of income can… Read More »

Loss Under the Head “House Property” Introduction Loss under the head “Income from House Property” arises when: Self-Occupied Property: The interest on housing loans exceeds the annual value (nil for self-occupied). Let-Out Property: The aggregate of interest on housing loans and municipal taxes exceeds the rental income. Losses can be set off against other incomes… Read More »

Carry Forward of Losses Introduction When losses cannot be fully set off within the same year due to inadequate eligible profits, they may be carried forward to subsequent assessment years for adjustment against eligible profits under the same income head. This ensures taxpayers can efficiently manage losses over time. Key Provisions for Carry Forward of… Read More »

Inter-Head Adjustment of Losses Introduction Inter-head adjustment allows for the set-off of losses from one head of income against income from another head within the same assessment year. Certain exceptions apply, such as capital losses being adjustable only against capital gains. Rules for Inter-Head Adjustment House Property Losses: o Losses from house property can be… Read More »

Intra-Head Adjustment Introduction Intra-head adjustment allows the set-off of losses from one source of income against income from another source within the same head of income. Specific rules and exceptions govern these adjustments, such as limiting long-term capital losses to only long-term capital gains. General Rules for Intra-Head Adjustment Losses from one source can be… Read More »

Rules for Set-off of Losses Introduction Set-off refers to adjusting losses against profits either from the same source/head of income (intra-head adjustment) or from different heads of income (inter-head adjustment) during the same assessment year. If full adjustment isn’t possible, losses may be carried forward to future years for adjustment against eligible profits. Key Rules… Read More »

Set-off and Carry Forward of Losses Introduction Set-off means adjustment of losses against the profits from another source/head of income in the same assessment year. If losses cannot be set-off in the same year due to inadequacy of eligible profits, then such losses are carried forward to the next assessment year for adjustment against the… Read More »