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

AI Summary

Understanding House Property Loss Set-Off: Current Year vs. Previous Year Rules for Tax Returns A user inquired about setting off house property losses in their income tax returns, specifically regarding the ability to carry forward losses from previous years. They faced issues with tax preparation tools, which only allowed set-off against positive house property income, not exceeding zero. The e-Filing Helpdesk clarified that current year losses must first be set off against income, and previous year losses can only be set off against current year house property income. The user acknowledged overlooking the instructions and resolved their query, expressing hope that the discussion would benefit others. Another participant found the information useful as well.