Section 157 requires the Assessing Officer to notify the assessee by an order in writing of the amount of loss computed by him. It applies when, in the course of assessing the total income of any assessee, it is established that a loss has occurred which the assessee is entitled to carry forward and set off.
The losses covered are those under s. 72(1) (business loss), s. 73(2) (speculation business loss), s. 74(1) or (3) (capital gains loss) and s. 74A(3) (loss from owning and maintaining race horses). The order records the amount as computed for the purposes of those provisions.
Operative consequences
The assessee receives a written order fixing the amount of loss available for carry forward.
The notified figure is the amount the Assessing Officer has computed under the carry-forward provisions named.
Where reassessment later recomputes the loss, s. 155(4) allows consequential amendment of the later years.
Status
Section 157 is operative for AY 2026-27. The Finance Act, 2026 does not amend it. The scheme under s. 157A can provide for issue of the intimation in faceless form.
s. 291 re-enacts the duty, by reference to the carry-forward provisions of the 2025 Act.
The 1961 Act governs AY 2026-27 and earlier assessment years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 291.
Function in the statutory architecture
Section 157 requires the Assessing Officer to notify the assessee by an order in writing of the amount of loss computed by him. It applies when, in the course of assessing the total income of any assessee, it is established that a loss has occurred which the assessee is entitled to carry forward and set off.
The losses covered are those under s. 72(1) (business loss), s. 73(2) (speculation business loss), s. 74(1) or (3) (capital gains loss) and s. 74A(3) (loss from owning and maintaining race horses). The order records the amount as computed for the purposes of those provisions.
Operative consequences
Status
Section 157 is operative for AY 2026-27. The Finance Act, 2026 does not amend it. The scheme under s. 157A can provide for issue of the intimation in faceless form.
s. 291 re-enacts the duty, by reference to the carry-forward provisions of the 2025 Act.
The 1961 Act governs AY 2026-27 and earlier assessment years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 291.