New Income Tax Bill Clause 115: Limits on Offsetting Race Horse Losses; Carry Forward for 4 Years Only

Clause 115 of the Income Tax Bill, 2025, addresses the set-off and carry-forward of losses from specified activities, specifically owning and maintaining race horses. Losses incurred in such activities cannot be offset against income from other sources within the same tax year. Unabsorbed losses can be carried forward to subsequent years but only offset against income from the same specified activity. These losses can be carried forward for a maximum of four consecutive tax years. The clause defines key terms such as "income by way of stake money," "loss incurred by the assessee," "race horse," and "specified activity."