Skip to content

CS Executive · Tax Laws and Practice · Income under the Head House Property

For tax year 2027-28, Kavita has income from house property of Rs. 1,50,000 (computed), a brought forward house property loss of Rs. 4,00,000 from an earlier year, and business income of Rs. 6,00,000. What is the effect of the brought forward loss in 2027-28?

Rs. 1,50,000 of the brought forward loss is set off against the year's house property income and the remaining Rs. 2,50,000 is carried forward. A carried forward house property loss cannot be set off against business or other heads.

  1. ARs. 1,50,000 is set off against house property income and Rs. 2,50,000 is carried forwardCorrect
  2. BRs. 4,00,000 is set off, Rs. 2,50,000 against business income
  3. CRs. 2,00,000 is set off against business income and Rs. 2,00,000 against house property
  4. DNothing is set off since the loss lapsed after one year

Explanation

Under section 110 a carried forward house property loss is set off only against house property income of the later year. Here that income is Rs. 1,50,000, so it is fully absorbed. The balance Rs. 4,00,000 - Rs. 1,50,000 = Rs. 2,50,000 is carried forward. Business income cannot absorb it.

Did you get it right without looking?

One question tells you little. A timed set on Income under the Head House Property shows your real accuracy, how long you take and where you lose marks.

Practise Income under the Head House PropertyFree diagnostic mock

More Income under the Head House Property questions