Loss Set-Off & Carry-Forward Checker
Pick a loss type and see instantly which heads it can be set off against this year, whether it carries forward, for how many years, and the key conditions.
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Set-off & carry-forward detail
Get your losses set off & carried forward correctly
A CA maps every loss to the right head and files your ITR in time to protect the carry-forward.
Disclaimer: General guidance on set-off and carry-forward of losses under the Income Tax Act, 1961 (Sections 70–74A). Special rules apply on change of ownership (Sec 79), unabsorbed depreciation and specified businesses. Confirm with a professional for your case.
The two golden rules of set-off
A loss is first set off within the same head (intra-head, Section 70) — for example one business against another business. Whatever remains can then be set off against other heads (inter-head, Section 71) in the same year, subject to limits. Anything still unabsorbed is carried forward to future years, but only against the head the law allows and only for a fixed number of years.
Full set-off & carry-forward matrix
Reference table for every loss head — what it can be set off against in the same year, whether it carries forward, for how long, and the key condition.
| Loss type | Same-year set-off | Carry forward | C/F set off against | Key condition |
|---|---|---|---|---|
| House Property (Sec 24) | Any head (inter-head capped at ₹2L/yr) | 8 years | House property income only | ₹2L inter-head cap; excess must be carried forward |
| Business (non-speculative) | Any head except salary | 8 years | Business income only | Return filed by 139(1) due date |
| Speculative business | Speculative income only | 4 years | Speculative income only | Return filed by 139(1) due date |
| Short-Term Capital Loss | STCG & LTCG | 8 years | STCG & LTCG | Return filed by 139(1) due date |
| Long-Term Capital Loss | LTCG only | 8 years | LTCG only | Return filed by 139(1) due date |
| F&O (non-speculative business) | Any head except salary | 8 years | Business income only | Return filed by 139(1) due date |
| Other Sources (e.g. loss on activity) | Any head (limited cases) | Not allowed* | — | *Owning/maintaining race horses: 4 yrs vs same income |
How set-off works — step by step
Intra-head set-off
Set the loss off against income under the same head first — one business vs another business, one house property vs another. Speculative loss and LTCL are ring-fenced even here.
Inter-head set-off
Set the remaining loss off against other heads in the same year. Business loss cannot touch salary; house-property loss vs other heads is capped at ₹2 lakh; capital losses stay within capital gains.
Carry forward
Whatever is still unabsorbed is carried forward — but only against the specific head the law permits, and only if the return was filed on time under Section 139(1).
Key terms explained
Intra-head vs inter-head
Intra-head (Sec 70) sets a loss off against income under the same head. Inter-head (Sec 71) sets the leftover against a different head in the same year. Carry-forward is always narrower than same-year set-off.
Section 139(1) condition
To carry forward business, speculative, capital and most other losses, you must file the return on or before the due date under Sec 139(1). A late return forfeits the carry-forward — house-property loss is the notable exception.
₹2 lakh house-property cap
Loss from house property can be set off against other income (salary, business, etc.) only up to ₹2,00,000 per year. Any excess is carried forward for 8 years and set off against house-property income only.
Speculative & capital ring-fencing
Speculative loss sets off only vs speculative income (c/f 4 yrs). LTCL sets off only vs LTCG; STCL vs both STCG and LTCG. Neither capital loss ever touches ordinary income.
Questions people ask
Short answers on Loss Set-Off & Carry-Forward. Tap a question to open it.
01What is the basic rule for setting off losses?
First set off within the same head, then against other heads in the same year, and only then carry forward what remains. Each type of loss has its own carry-forward period and its own restrictions on what it can be set off against.
02Which losses can be set off against salary?
Only a loss from house property, and that only up to ₹2,00,000 a year. Business losses and capital losses cannot be set off against salary income at all.
03How long can losses be carried forward?
Business loss and capital loss for eight assessment years; house property loss for eight years; speculation loss for four years; and unabsorbed depreciation indefinitely.
04What happens if I file the return late?
Most losses cannot be carried forward if the return is not filed by the due date under section 139(1). The two exceptions are house property loss and unabsorbed depreciation, which survive a belated return.
05Can a long-term capital loss be set off against short-term gain?
No. Long-term capital loss can only be set off against long-term capital gain. Short-term capital loss is more flexible and can be set off against both short-term and long-term gains.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.