Act 2025Sections 108–121

Chapter VII of the Income-tax Act, 2025 — Set Off or Carry Forward and Set Off of Losses

Fourteen sections deciding which losses may be set off, against what, and for how long they survive.

What this chapter does

Sections 108 to 121 separate set-off within a head, set-off across heads, and carry-forward. House property, capital gains, ordinary business, speculation business, specified business and specified activity each get their own carry-forward rule, and sections 116 to 118 deal with what happens to accumulated losses and unabsorbed depreciation in an amalgamation, a demerger or a co-operative bank reorganisation. Section 120 blocks set-off against undisclosed income found in a search, requisition or survey.

What to watch

Section 121 makes the return the gatekeeper: a loss not returned in time may not be carried forward at all.
Section 119 is a standing bar in specified cases; check it before computing any carry-forward.

The sections in this chapter

14 sections, in the order the Act runs them. 14 have a page of their own.

What this page does not tell you. This page gives the shape of the chapter and the Act's own heading for every section in it. It does not reproduce the text of any section, and a heading is not the provision. Where a section is marked read in full, that page carries the working; everywhere else, read the section itself before relying on anything here.