[FAQs] Income Tax Returns (ITR) | Set-off of Losses

  • ITR Week 2024-25|Blog|Income Tax|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 20 June, 2024

set off loss against salary income

Set off loss against salary income refers to the process of using losses incurred from house property to reduce taxable salary income. According to Section 71 of the Income Tax Act, you can offset up to Rs. 200,000 of house property loss against your salary income in a given assessment year. Any remaining loss can be carried forward to subsequent years.

FAQ 1. I have earned a salary income of Rs. 800,000 and have incurred a loss of Rs. 300,000 from house property. Can I offset this loss against my salary income?

According to Section 71 of the Income Tax Act, losses from house property can be set off against other income. However, there is a limitation on the set-off amount. Specifically, you can only offset a maximum of Rs. 200,000 of your house property loss against your salary income in any given assessment year. Therefore, you can adjust Rs. 200,000 of your house property loss against your salary income, and the remaining Rs. 100,000 loss will need to be carried forward to subsequent years for set-off.

Read More
Inter-head Adjustment on Taxmann.com/Practice

Taxmann.com | Practice | Income-tax

FAQ 2. I have a long-term capital loss of Rs. 70,000 from the sale of listed equity shares. Can I set off or carry forward this loss?

Section 112A of the Income Tax Act provides a concessional tax rate of 10% on long-term capital gains arising from the sale of certain securities if the gains exceed Rs. 1 lakh. While gains up to Rs. 1 lakh are not taxed, they are not considered exempt income. Consequently, any long-term capital loss from the sale of listed equity shares can indeed be set off against long-term capital gains and carried forward to subsequent years.

Dive Deeper:
Income Tax Returns (ITR) | Which ITR Form is to be filed for AY 2024-25
[FAQs] Income Tax Returns (ITR) | Requirement to File ITR
Income Tax Returns (ITR) | New Tax Regime vs. Old Tax Regime
[FAQs] Income Tax Returns (ITR) | Updated Returns
[FAQs] Income Tax Returns (ITR) | Reporting in Schedules in ITR
[FAQs] Income Tax Returns (ITR) | e-Filing of ITR
[FAQs] Income Tax Returns (ITR) | Annual Information Statement (AIS)
[FAQs] Income Tax Returns (ITR) | Capital Gains
[FAQs] Income Tax Return | Tax Payment | TDS | TCS | Refunds
[FAQs] Income Tax Returns (ITR) | Deductions & Rebates
[FAQs] Income Tax Returns (ITR) | Clubbing of Income

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied