71B. Carry forward and set off of loss from house property
Updated: Sep 30
A loss under the head house property can be set off against any income generated in the year it is incurred. If the consequence of such a set off is a loss, the loss can be carried forward for up to eight assessment years. This loss can be carried forward to later years only against house property revenue and not against any other source of income.
If the assessee suffers a dwelling property loss in any Assessment Year, he is eligible to set against such loss against income under other heads up to a ceiling of Rs. 2 lakh per year. Any remaining balance will be carried forward.
Simply put, intra and inter head adjustments are both feasible in the year a loss is incurred, but only intra head adjustments are possible in the years of carry forward.