Carry forward and set off of loss under the head "Income from House Property" - (New) Section 110 / (Old) Section 71B

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....lies where: • a loss is computed under the head Income from House Property; • the loss cannot be wholly adjusted during the same tax year under Section 109; and • a balance of unabsorbed loss remains after the permissible inter-head set-off. Thus, Section 110 is a carry-forward provision, not a computation provision. Sub-section (1) contains two importa....

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....ection 109 • Current year's house property loss is first adjusted against income from other heads, subject to the statutory limit of Rs.2,00,000 for such inter-head adjustment. Step 2 - Section 110 • The balance, if any, is carried forward. • In future years, that balance can be adjusted only against house property income. Under Section 71B&nbs....

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.... off; or • the assessee has no income under any other head. Thus, only the unabsorbed portion of the house property loss is carried forward. Relationship with Section 71 • Section 71 allows inter-head adjustment of losses. • For house property loss: • During the relevant assessment year, loss from house property may be set off against incom....