SET OFF CARRY FORWARD OF LOSSES INCOME TAX INDIA

Set off of losses and carry forward of losses is tedious subject for taxpayers and mostly confusing but with the help of chart given below,it is very easy to understand all the heads ,inter heads adjustment in very easy manner.In this chart adjustment in the previous year and adjustment in next year if possible has been shown. Hope it would be helpful to you to under stand the set off and carry forward concept easily.

CARRY FORWARD & SET -OFF OF LOSSES:	Set-off During the year			Carry Forward & Set - off Next year(s)
	Same Head	Another head	Against	C/F	Years	Agst Profits From
1. House Property	Yes	Yes	-	Yes	8 years	same head
2. Speculation Business	Yes	No	From Speculation Profits	Yes	4 years	Same/ another Speculation Business
Unabsorbed  Depreciation  / Cap Exp on SR/FP	Yes	Yes	any income	Yes	No limit	any income (other than salary)
Non-speculative Business or Profession	Yes	Yes (except salary)	Any Business Profits	Yes	8 years	same head
3. Long Term Capital Losses	Yes	No	LTCG	Yes	8 years	LTCG
Short Term Capital Losses	Yes	No	STCG/LTCG	Yes	8 years	STCG/LTCG
4. Owning / Maintaining race horses	Yes	No	same item	Yes	4 years	same item
5. Income from Other Sources (except if exempt)	Yes	Yes	NA	No	NA	NA
6. Specified Business u/s 35AD	Yes	No	Specified Business Profits	Yes	No Limit	Any  Specified Business