1 ,2 (1) Where in respect of any assessment year, the net result of the computation under the head "Capital gains" is a loss to the assessee, the whole loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and-
(a) in so far as such loss relates to a short-term capital asset, it shall be set off against income, if any, under the head "Capital gains" assessable for that assessment year in respect of any other capital asset;
(b) in so far as such loss relates to a long-term capital asset, it shall be set off against income, if any, under the head "Capital gains" assessable for that assessment year in respect of any other capital asset not being a short-term capital asset;
(c) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following assessment year and so on.
(2) No loss shall be carried forward under this section for more than eight
assessment years immediately succeeding the assessment year for which the loss
was first computed.
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1. Subs. by Act 11 of 1987, s. 31, for section 74 (w.e.f.
1-4-1988).
2. Subs. by Act 20 of 2002, s. 29, for sub-section (1) (w.e.f. 1-4-2003).
3. Sub-section (3) omitted by Act 20 of 2002, s. 29 (w.e.f. 1-4-2003).
Section 71 Set off of loss from one head against income from another
Section 71A Transitional provisions for set off of loss under the head Income from house property
Section 71B Carry forward and set off of loss from house property
Section 72 Carry forward and set off of business losses
Section 73 Losses in speculation business
Section 73A Carry forward and set off of losses by specified business