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Carry forward and set off of loss from house property – Sec 71B

U.C Date : 25 Feb 2015

If there is a loss under the head House Property and it cannot be set off or only partially set off under the same head or other head of income u/s 71 then  such loss can be carried forward to 8  subsequent years. The loss so carried forward can be set off from income under the head “House Property”(not from income under other heads).

There is no condition that carry forward is allowed only when return is submitted within time limit u/s 139. Also, the loss under house property is allowed to be carried forward even if the house property is sold in next assessment years.

Bare Act for Sec 71B

Bare Act for Sec 71B

Where for any assessment year the net result of computation under the head “Income from house property” is a loss to the assessee and such loss cannot be or is not wholly set off against income from any other head of income in accordance with the provisions of section 71, so much of the loss as has not been so set-off or where he has no income under any other head, the whole loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year and—

(i) be set off against the income from house property assessable for that assessment year; and

(ii) the loss, if any, which has not been set off wholly, the amount of loss not so set off,

shall be carried forward to the following assessment year, not being more than eight assessment years immediately succeeding the assessment year for which the loss was first computed.

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