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…
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ITA 2025 · Section 110
Section 110 — CARRY FORWARD OF HOUSE PROPERTY LOSS (1961 s. 71B SUCCESSOR)
Section 110 is the substantive equivalent of 1961 s. 71B. 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 and set off ONLY against HP-head income. Inter-head set-off NOT available in carry-forward years. Tax-return-filing within s. 263 due-date is mandatory for preserving carry-forward (s. 263(2) successor).
PLANNING NOTES
(i) Under FA 2017 cap (₹ 2 lakh inter-head), most leveraged-property loss now necessarily carries forward — track meticulously. (ii) ITR Schedule HP-CFL must be populated correctly; missed-CFL-claim cannot be revived in subsequent year. (iii) For 8-year limit: count from year of incurring loss; year-9 unused = lost. (iv) For multi-property assessees, intra-head set-off (s. 108) operates before carry-forward — document order.
CROSS-REFERENCES