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

Under the Income-tax Act, 2025, a loss from house property for a tax year that could not be wholly set off against income under other heads is carried forward to the following tax year. Against which income can the carried-forward loss be set off?

The carried-forward house property loss can be set off only against income from house property of the following tax years. It cannot be set off against salary, business, capital gains or other sources income in those later years, as section 110 restricts it to the same head.

  1. AOnly income from house propertyCorrect
  2. BIncome from house property and income from other sources
  3. CAny income under any head except salary
  4. DOnly business income, other than speculation business

Explanation

Section 110(1)(a) permits the carried-forward house property loss to be set off only against income from house property assessable for that tax year. The other options allow set off against other heads, which the section does not permit in later years.

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