Chapter VII

Section 108 is the substantive equivalent of 1961 s. 70 — opening section of Chapter VII (Set-off & Carry Forward). Sub-section (1): Within the SAME head of income (other than CG), losses from one source may be set off against income…

Section 109 is the substantive equivalent of 1961 s. 71 . Inter-head set-off: losses computed under any head (other than CG) may be set off against income of any other head, including CG, subject to: (a) Speculation / specified-business…

Section 110 is the substantive equivalent of 1961 s. 71 B. Where HP loss for a tax year cannot be wholly set off under s. 109 (inter-head with ₹ 2 lakh cap), the un-set-off balance is carried forward for up to EIGHT subsequent tax years…

Section 111 is the substantive equivalent of 1961 s. 74 . Where CG-loss cannot be wholly set off intra-head u/s 108, the unallowed balance is carried forward up to EIGHT subsequent tax years. Set-off rules in carry-forward years preserve…

Section 112 is the substantive equivalent of 1961 s. 72 . Where non-speculation, non-specified-business PGBP-loss cannot be set off intra-head ( s. 108 ) or inter-head ( s. 109 ), the balance is carried forward up to EIGHT subsequent tax…

Section 113 is the substantive equivalent of 1961 s. 73 . Speculation-business loss has a SEPARATE COMPARTMENT in tax computation: Sub-section (1) — Speculation-loss may be set off ONLY against another speculation-business profit (no…

Section 114 is the substantive equivalent of 1961 s. 73 A. 'Specified business' (cross-referenced to s. 46 ) covers infrastructure / cold-chain / pipeline / hospital / hotel / fertiliser / sugar / housing-project businesses eligible for…

Section 115 is the substantive equivalent of 1961 s. 73 B / s. 115 VC-VR (Tonnage Tax) carry-forward rules. It creates a SEPARATE COMPARTMENT for losses from 'specified activities' — typically tonnage-tax shipping / racehorse owning /…

Section 116 is the substantive equivalent of 1961 s. 72 A — the most consequential M&A tax provision in the Act, preserving the inherited tax-shield value of accumulated losses and unabsorbed depreciation across corporate…

Section 117 is the substantive equivalent of 1961 s. 72 AA — the SPECIAL-statute amalgamation regime distinct from the general s. 116 framework. It addresses three specific reorganisation categories effected under STATUTORY SCHEMES (not…

Section 118 is the substantive equivalent of 1961 s. 72 AB. Where a co-operative bank undergoes business reorganisation (amalgamation / demerger / conversion to banking-company), the predecessor's accumulated loss and unabsorbed…

Section 119 is the substantive equivalent of 1961 ss. 78 / 79A. Sub-section (1) — for FIRMS undergoing reconstitution (retirement / death of partner), the proportionate loss attributable to the retired/deceased partner cannot be carried…

Section 120 is the substantive equivalent of 1961 s. 79 A. Where any UNDISCLOSED INCOME is detected as a result of search ( s. 286 -equivalent block / specified-period assessment) or survey ( s. 287 -equivalent), NO LOSS — whether…

Section 121 is the substantive equivalent of 1961 s. 80 . It mandates that NO LOSS shall be carried forward and set off under ss. 111(1), 112(1), 113(2), 114(2) etc. UNLESS the loss has been determined IN PURSUANCE OF A RETURN FILED UNDER…