§ 109
Chapter VII — Set Off, Or Carry Forward And Set Off Of Losses
Set off of losses under any other head of income
Income-tax Act, 2025
Business owners can set off losses from one income head against income from another head, with some exceptions. Losses from business or profession cannot be set off against salary income. Losses from house property can be set off up to a certain limit against other income.
- Loss from house property can be set off up to ` 200000.
📜 Official text of the section +
109. (1) Subject to the provisions of this Chapter, for any tax year, if income com-
puted under any head of income (other than “Capital gains”) is a loss,
such loss shall be set off against income of the assessee under any other head,
including “Capital gains”, if any, assessable for that tax year, subject to the following
conditions:—
( a) loss under the head “Profits and gains of business or profession” shall
not be set off against income assessable under the head “Salaries”; and
( b) loss under the head “Income from house property” shall be set off to the
extent of ` 200000 against income under any other head.
(2) For any tax year, the loss under the head “Capital gains” shall not be set off
against income under any other head.
Carry forward and set off of loss from house property.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.
Related sections
§ 108SET OFF, OR CARRY FORWARD AND SET OFF OF LOSSES Set off of losses under same head of income§ 110Carry forward and set off of loss from house property§ 111Carry forward and set off of loss from Capital gains§ 112Carry forward and set off of business loss§ 113Section 113§ 114Set off and carry forward of losses computed in respect of specified business