Clause 120, Income Tax Bill 2025: No loss set-off against undisclosed income from searches or surveys.

Clause 120 of the Income Tax Bill, 2025, prohibits the set-off of any losses, including brought forward losses or unabsorbed depreciation, against undisclosed income identified during searches, requisitions, or surveys conducted under specified sections of the Act. This restriction applies regardless of any other provisions in the Act. The term "undisclosed income" is defined in section 301 of the Act. This measure aims to prevent the offsetting of declared losses against income that has not been disclosed to tax authorities, ensuring that such income is fully taxable.

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