Carry Forward of Loss
S.No.Type of loss to be carried forward to next year(s)Profits Against which loss can be set off in the same yearProfit Against which carried forward loss can be set off in next year(s)For how many years loss can be carried forwardIs it necessary to submit return of loss in time1.House property lossAny income*Income under the head“Income from house property”8 YearsNo2.Speculations lossSpeculation ProfitsSpeculation profits4 YearsYes3.Non- Speculations business loss(i)Unabsorbed depreciation, capital expenditure on scientific research and family planningAny income*Any income, Not being salary income*No time limitNo(ii)Loss from a specified business under section 35ADIncome from a specified business under section 35ADIncome from a specified business under section 35ADNo time limitYes(iii)Other remaining business lossAny income, Not being salary income*Any business profit (whether from speculation or otherwise)8 YearsYes4.Capital loss(i)Short-term capital lossShort or long term capital gainAny income under the head of “Capital gains”8 YearsYes(ii)Long-term capital lossLong term capital gainLong term capital gains8 YearsYes5.Loss from the activity of owing and maintaining race horsesIncome from the activity of owing and maintaining race horsesIncome from the activity of owing and maintaining race horses4 YearsYes
*Loss cannot be set off against winnings from lotteries, crossword puzzles, races including horse races, card games or any other games or from gambling or betting of any form.
Loss from a source can be set off only if its profit is taxable. If profits from a source are exempt then its loss cannot be set off.