Section 111 — Carry forward and set off of loss from Capital gains
Old Act equivalent: Section 74 of IT Act 1961 Sub-part: Set off, or carry forward and set off of losses
Statutory Text
- (1)(a) Where for any tax year, loss computed under the head “Capital gains”
cannot be wholly set off against the income under the head “Capital gains” as per section 108, 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 shall be set off in the following manner—
(i) if such loss relates to a short-term capital asset, it shall be set off only against the income under the head “Capital gains”, if any, assessable for that tax year in respect of any other capital asset;
(ii) if such loss relates to a long-term capital asset, it shall be set off only against the income under the head “Capital gains”, if any, assessable for that tax year in respect of any other long-term capital asset; and (b) if the loss cannot be wholly so set off under clause (a), 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. Carry forward and set off of business loss.
Provisos
None.
Explanations
None.
Tables
Present in statutory text above — see formatted section.
Key Structure
- Applies to: All assessees with capital gains losses
- Conditions: Loss under head Capital gains not fully set off under section 108
- Time limits: Carry forward for maximum 8 tax years from year of loss
- Monetary limits: No specific monetary limit
- Exceptions: Short-term capital loss can set off against any capital gains; long-term capital loss only against long-term capital gains
Cross-References
- Section 108
Amendment Notes
None noted from the extracted pages.