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

Which of the following correctly compares the carry forward provisions of the Income-tax Act, 2025 for a house property loss and a speculation business loss?

A house property loss is carried forward for up to eight tax years and set off only against house property income, while a speculation business loss is carried forward for up to four tax years and set off only against profits of speculation business.

  1. ABoth can be carried forward for eight tax years and set off against any income of the same head
  2. BHouse property loss: eight years, against house property income; speculation loss: four years, against speculation business profitsCorrect
  3. CHouse property loss: four years, against any income; speculation loss: eight years, against business income
  4. DBoth can be carried forward for four tax years and set off only against house property income

Explanation

Section 110 allows house property loss to be carried forward for eight tax years and set off only against house property income. Section 113 limits speculation loss to four tax years and set off only against profits of speculation business.

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