Income Tax Act, 2025  ·  Chapter VII — Set Off and Carry Forward of Losses  ·  Section 108

Section 108
Set off of losses under same head of income

IT Act 2025 Chapter VII Effective 1 April 2026 Old: 70
New Provision
Section 108, IT Act 2025
Replaces (IT Act 1961)
70
Chapter
Chapter VII — Set Off and Carry Forward of Losses
Effective From
1 April 2026
Statutory Text — Section 108

(1) Unless provided otherwise in this Act, for any tax year, if net result of computation from any source under any head of income (other than “Capital gains”) is a loss, then assessee shall be entitled to set off such loss against his income from any other source under the same head for that tax year. (2) Where the net result of computation of income made for any tax year under sections 72 to 90 in respect of— (a) any short-term capital asset is a loss, such loss shall be set off against the income, computed in respect of any other capital asset for that year; (b) any long-term capital asset is a loss, such loss shall be set off against the income computed in respect of any other long-term capital asset for that year.

Shahi & Co. — Our Understanding
This section is part of Chapter VII of the Income Tax Act, 2025, effective from 1 April 2026. It carries forward the corresponding provision from the Income Tax Act, 1961 with simplified language and restructured drafting.
Practical Note: For specific guidance on how this provision applies to your situation, consult a qualified Chartered Accountant. The Income Tax Act, 2025 retains the substance of the old law while making it more accessible.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 108 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to egazette.gov.in or incometaxindia.gov.in. This does not constitute legal or tax advice.