Income Tax Act, 2025  ·  Chapter VII — Set Off and Carry Forward of Losses  ·  Section 110

Section 110
Carry forward and set off of loss from house property

IT Act 2025 Chapter VII Effective 1 April 2026 Old: 71B
New Provision
Section 110, IT Act 2025
Replaces (IT Act 1961)
71B
Chapter
Chapter VII — Set Off and Carry Forward of Losses
Effective From
1 April 2026
Statutory Text — Section 110

(1) Where for any tax year, loss computed under the head “Income from house property” cannot be wholly set off against the income under any other head as per section 109, so much of the loss not so set off or the whole loss, as the case may be, shall be carried forward to the following tax year and— (a) be set off only against the income from house property, if any, assessable for that tax year; and (b) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following tax year and so on. (2) No loss shall be carried forward under this section for more than eight tax years immediately succeeding the tax year for which the loss was first computed.

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
Need guidance on Section 110?
Our Direct Tax team advises individuals, businesses, and start-ups on all provisions of the Income Tax Act, 2025. We help you navigate the transition from the old Act with zero disruption to your compliance calendar.
Consult Our Tax Team →
← Previous
Section 109: Set off of losses under any other head of inc
Next →
Section 111: Carry forward and set off of loss from Capita
← Full IT Act 2025 Index ESOP Taxation Guide TDS under IT Act 2025 NRI Residency Rules
Disclaimer: This is a reproduction of Section 110 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.