Income Tax

House property loss set-off against other income head limit of Rs. two lakh for any assessment year.

House property loss set-off against other income head limit of Rs. two lakh for any assessment year. New sub section (3A) to Section 71

Budget 2017-18 : Restriction on set-off of loss from House property

Section 71 of the Act relates to set-off of loss from one head against income from another. In line with the international best practices it is proposed to insert sub-section (3A) in the said section to provide that set-off of loss under the head “Income from house property” against any other head of income shall be restricted to two lakh rupees for any assessment year. However, the unabsorbed loss shall be allowed to be carried forward for set-off in subsequent years in accordance with the existing provisions of the Act.

This amendment will take effect from 1st April, 2018 and will, accordingly apply in relation to assessment year 2018-19 and subsequent years.

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