§ 121
Chapter VII — Set Off, Or Carry Forward And Set Off Of Losses
Submission of return for losses
Income-tax Act, 2025
Business owners must file a return to claim a loss. If not, the loss cannot be carried forward or set off against future income. This applies to various sections under the Income-tax Act.
- Losses must be determined through a return filed under section 263(1) to be eligible for carry forward and set off.
📜 Official text of the section +
121. Irrespective of anything contained in this Chapter, no loss which has not been
determined in pursuance of a return filed under section 263(1), shall be
carried forward and set off under section 111(1) or 112(1) or 113(2) or 114(2) or
115(2).
CHAPTER VIII
DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME
A.—General
Deductions to be made in computing total income.
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§ 109Set off of losses under any other 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