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.