Section 114 — Set off and carry forward of losses computed in respect of specified business
Old Act equivalent: Section 73A of IT Act 1961 Sub-part: Set off, or carry forward and set off of losses
Statutory Text
- (1) Any loss, computed in respect of a specified business, referred to in section
46, shall be set off only against profits and gains of another specified business. (2) Where for any tax year, loss computed in respect of a specified business cannot be wholly set off under sub-section (1), 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—
(i) be set off against the profits and gains, if any, of any specified business carried on by him for such tax year; and
(ii) 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. Set off and carry forward of losses from specified activity.
Provisos
None.
Explanations
None.
Tables
Present in statutory text above — see formatted section.
Key Structure
- Applies to: All assessees with specified business losses under section 46
- Conditions: Loss from specified business to be set off only against profits of another specified business
- Time limits: No time limit for carry forward (indefinite carry forward)
- Monetary limits: No specific monetary limit
- Exceptions: Can be set off only against specified business profits
Cross-References
- Section 46
Amendment Notes
None noted from the extracted pages.