income-tax

Set-off and Carry Forward of Losses

Understanding how to set off business losses against income and carry forward rules.

GetYourCA Team
1 March 2025·Updated 9 April 20261 min read12.5K views

Set-off and Carry Forward of Losses

Types of Losses#

  • Business loss
  • Capital loss
  • House property loss
  • Speculative loss

Set-off Rules#

Intra-year#

  • Business loss → Business income
  • Capital loss → Capital gains
  • House property loss → Any income

Inter-year (Carry Forward)#

  • Business loss: 8 years
  • Capital loss: 8 years
  • House property loss: 8 years

Conditions#

  • File return on time
  • Audit if required
  • Continue business

Conclusion#

Proper loss planning saves tax.

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GetYourCA Team

Tax Expert

10+ years experience

Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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