Section 110 - Carry forward and set off of loss from house property
Unabsorbed house-property loss is ring-fenced in later years. It can be carried for up to eight tax years and used only against income from house property. The period runs from the tax year for which the loss was first computed.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Current-law control
This page uses the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The Act and Income-tax Rules, 2026 operate from 1 April 2026. Earlier years and saved proceedings remain subject to the repeal-and-savings framework.
Primary statute: Income Tax Department consolidated Act | Rules: Notified Income-tax Rules, 2026
2-minute decode
Unabsorbed house-property loss is ring-fenced in later years. It can be carried for up to eight tax years and used only against income from house property. The period runs from the tax year for which the loss was first computed.
Who should use this section
Taxpayers with current-year or carried-forward losses under the relevant head or specified activity This applicability note is specific to section 110.
Old-law bridge
1961 Act section 71B
The bridge is navigational only. A 1961 Act case or rule is carried forward only after checking wording, transition provisions and the current 2025 Act text.
Professional alert
Exception / professional alert Section 121 does not list section 110. This is a major return-timing distinction from capital and business losses, although filing and procedural compliance should never be delayed.
Connected Income-tax Rules, 2026 and Forms
No provision-specific Rule/Form is independently mapped in this tranche. General return, procedure and evidence rules can still apply.
Worked application
A tax-year 2026-27 house-property loss of ₹1.20 lakh remains after current-year set-off. In tax year 2027-28 the taxpayer has house-property income of ₹70,000, so ₹70,000 may be absorbed and ₹50,000 may continue within the original eight-year window.
Evidence / compliance checklist
- Build a section 110 loss ledger showing source, head, tax year of origin, amount used and balance carried forward.
- Preserve the timely return and assessment/intimation that determines the loss where the statute makes filing a condition (section 110: Carry forward and set off of loss from house property).
- For reorganisations, retain scheme orders, ownership continuity, asset/business continuity and predecessor-successor tax records (section 110: Carry forward and set off of loss from house property).
- Prevent double use by reconciling the carry-forward schedule to each later return before set-off (section 110: Carry forward and set off of loss from house property).
Common mistake
Using a single “loss carried forward” figure for section 110 without preserving head/source restrictions, filing conditions and the remaining statutory period.
Recommended approach
For section 110, fix the governing tax year, identify the operative sub-section for “Carry forward and set off of loss from house property”, trace every amount to evidence, apply only verified Rule/Form links, and retain a computation that another reviewer can reproduce from the primary source.
Thresholds, periods and timing checkpoints
- 110. (1) Where for any tax year, loss computed under the head “Income from
- case may be, shall be carried forward to the following tax year and—
- for that tax year; and
- shall be carried forward to the following tax year and so on.
- (2) No loss shall be carried forward under this section for more than eight tax years
- immediately succeeding the tax year for which the loss was first computed.
Judicial / interpretive bridge
No section-specific Supreme Court bridge is included for section 110 unless text-equivalence with the 2025 Act has been checked. Legacy cases should not be transplanted into section 110 merely because the subject is similar.
Related provisions
Current statutory text
Primary-source trail
FAQs
What does section 110 of the Income-tax Act, 2025 cover?
Section 110 covers carry forward and set off of loss from house property. The operative result depends on the exact statutory conditions shown on this page and applies from 1 April 2026, subject to transition/savings provisions.
Who should check section 110?
Taxpayers with current-year or carried-forward losses under the relevant head or specified activity This applicability note is specific to section 110.
Are there specific Rules or Forms for section 110?
No provision-specific Rule/Form independently mapped in this tranche.