Query regarding set off of house property loss

[Bipin M]

I have a House Property(HP) loss of ₹ 35000 carried forward from previous years and in current year the loss from HP is 170000. My expectation is that i'm able to set off 30000 from previous year and carry forward the remaining 5000 to future. The ITR prepration tools (excel & java) does not let me do that. The tool allows set off only when i'hv a positive income from HP and set off from previous year is possible only until income is 0.

Example 1 (with negative HP income)

Income from HP in current year = -170000

Carried forward from AY: 2018-19 = 35000

Set off salary in current year = -170000

Carried forward to future: 35000

 

My expectation is tool allows set off in HP upto -200000 and balance 5000 can be carried fordward.

 

Example 2 (with positive HP income)

Income from HP in current year = 10000

Carried forward from AY: 2018-19 = 35000

Set off salary in current year = 10000

Carried forward to future: 25000

 

If i'm correct, in both cases the set off must allow upto -2,00,000 and not just up to 0. Currently the tool allows only set off in HP case up to 0.

 

Below is response from IT Helpdesk

Thank you for contacting e-Filing Help desk. There is no issue in the utility set off was done correctly. The current year set off was done against the salary and previous year HP will be set off against the current year HP only. Since there is a loss in the current year due to this no set off was done.

Thanks & Regards,
e-Filing Helpdesk

Website:https://incometaxindiaefiling.gov.in

[Bipin M]

I overlooked the ITR instructions which clearly states..

to the extent such brought forward losses etc. are permitted to be set-off against remaining positive incomes under various heads for the current year, as per the Schedule BFLA.

My query is resolved. Sorry for the post but hope it helps someone in future!

[DR.MARIAPPAN GOVINDARAJAN]

Ok. It is also useful for us.

AI Summary

House property loss set-off allowed only against current year house property income under Schedule BFLA, not against salary.
A taxpayer queried whether brought forward house property losses can be set off against a current year house property loss or other heads. The e Filing helpdesk replied that set off was applied correctly and that brought forward house property losses are set off against current year house property income only. The taxpayer then confirmed ITR instructions that brought forward losses are permitted to be set off against remaining positive incomes as allowed by Schedule BFLA, resolving the query.