Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Check house-property, business, speculation, capital, specified-business, depreciation and VDA loss treatment.
Check one loss category at a time
Loss treatment
This is a category-level screening, not a replacement for Schedule CYLA, BFLA or CFL.
Current-year set-off indicated
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Balance potentially carried forward
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Measure
Result
Carry-forward period
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Timely-return condition
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Income against which future set-off is allowed
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Salary set-off
Not allowed for business loss or unabsorbed depreciation
How This Is Calculated
Different loss types follow different set-off rules: house property loss can offset other-head income up to ₹2,00,000 per year under the old regime (nil under the new regime), with any excess carried forward up to 8 years (only against future house property income). Capital losses can only be set off against capital gains (short-term losses against both STCG and LTCG; long-term losses only against LTCG), and business losses generally require a return filed by the due date to be carried forward.
Frequently Asked Questions
What is the cap on setting off house property loss against other income?
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Under the old regime, house property loss can offset up to ₹2,00,000 of income from other heads (like salary) in the same year; any excess is carried forward for up to 8 years, usable only against future house property income. Under the new regime, this inter-head set-off is not available at all.
Can capital losses be set off against salary income?
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No. Capital losses (short-term or long-term) can only be set off against capital gains — they cannot be adjusted against salary, business income, or any other head. Short-term capital loss can offset both STCG and LTCG; long-term capital loss can only offset LTCG.
What happens if I file my ITR late — can I still carry forward losses?
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Generally, business losses and capital losses can only be carried forward if the return is filed by the original due date — filing late (a belated return) typically forfeits the right to carry forward these losses, though house property loss carry-forward is treated differently and isn't subject to this timely-filing condition.
Scope: Checks which capital/business losses can be set off against which heads of income in the current year, and which must be carried forward, per the set-off and carry-forward rules under Sections 70-80 of the Income-tax Act.
Calculation logic
Intra-head set-off: losses under one head can generally be set off against income under the same head in the same year (e.g., short-term capital loss against short-term or long-term capital gains).
Inter-head set-off: business losses (other than speculative) can be set off against income from other heads (except salary) in the same year; house property loss can be set off against any head up to ₹2,00,000 per year, with the balance carried forward.
Capital losses can only be set off against capital gains (short-term loss against both short- and long-term gains; long-term loss only against long-term gains) — never against other heads, and never carried forward beyond 8 assessment years.
Speculative business loss and loss from specified businesses under Section 35AD can only be set off against income of the same specific category, both in the current year and on carry-forward.
Inputs and assumptions
Carry-forward of a loss (other than house-property loss) is permitted only if the return for the loss year was filed on or before the due date under Section 139(1) — a belated return forfeits the right to carry forward most losses (house property loss can still be carried forward even if filed late).
Carry-forward periods vary by loss type: capital loss and most business loss — 8 years; speculative business loss — 4 years; house property loss — 8 years; unabsorbed depreciation — no time limit.
Exclusions and edge cases
Does not itself track loss carry-forward balances across multiple past years — the user must enter the brought-forward loss figures from prior-year returns.
Does not apply to losses under the new tax regime's restricted deduction structure differently than the old regime for set-off purposes — the underlying set-off provisions under Sections 70-80 apply irrespective of regime; only certain deductions feeding into the loss computation differ by regime.