ITA 2025 · Chapter VII
Chapter VII
Sections in this chapter
- 108
Intra-Head Set-off
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…
- 109
Inter-Head Set-off
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…
- 110
Carry Forward HP Loss
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…
- 111
Carry Forward CG Loss
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…
- 112
Carry Forward Business Loss
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…
- 113
Speculation Business Loss
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…
- 114
Specified Business Loss
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…
- 115
Specified Activity Loss
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 /…
- 116
Loss on Amalgamation Demerger
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…
- 117
Banking and Govt Insurance Co Amalgamation
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…
- 118
Co-op Bank Reorganisation Loss
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…
- 119
Loss Forfeiture on Firm Reconstitution
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…
- 120
No Loss vs Search Survey Income
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…
- 121
Timely Return Required
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…