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CMA Intermediate · Direct and Indirect Taxation · Income from House Property

Mr. Raman has a house property loss of Rs 2,40,000 for a tax year which could not be set off against other heads and was carried forward. For how many tax years immediately succeeding the year in which it was first computed can it be carried forward under the Income-tax Act, 2025?

A house property loss can be carried forward for a maximum of eight tax years immediately succeeding the tax year in which it was first computed. The four-year limit applies to speculation and specified activity losses, and there is no indefinite carry forward for this head.

  1. AFour tax years
  2. BEight tax yearsCorrect
  3. CTwo tax years
  4. DIndefinitely, until fully set off

Explanation

Section 110(2) states that no loss shall be carried forward for more than eight tax years immediately succeeding the tax year for which the loss was first computed. Four years applies to speculation business and specified activity losses, not house property.

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