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  • Writer's pictureShruti Sharma

71A. Transitional provisions for set off of loss under the head ―Income from house property.







To set off losses is to compare the losses to the revenue or profit for that specific year. Losses that aren't offset against income in the current year can be carried over to the following years to be offset against income in those years. An inter-head set-off or an intra-head set-off can occur during a set-off.

  • Intra-head Set Off

The losses from one source of income can be set off against income from another source under the same head of income.

  • Inter-head Set Off

After the intra-head adjustments, the taxpayers can set off remaining losses against income from other heads.


When the net result of the computation under the head "Income from house property" is a loss for the assessment year beginning on the first day of April 1993 or the first day of April 1994, Section 71A states that the loss, to the extent it relates to interest on borrowed capital mentioned in clause (vi) of sub-section (1) of Section 24 and to the extent it has not been set off, shall be carried forward and set off in the assessment year beginning on the first day of April 1995.

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