Comparison of Section 110 "Carry forward and set off of loss from house property." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome from house property" and the income-tax administration; effective date or decision date: Not stated in the document. Background & Scope Statutory hooks: Clause 110 is in the Income Tax Bill, 2025 (Old Version) under the heading "SET OFF, OR CARRY FORWARD AND SET OFF OF LOSSES." The clause addresses the treatment of losses arising under the head "Income from house property." The clause contains three subsections. Subsection (1) mandates carry forward of the unabsorbed loss and restricts set-off to income from house property in subsequent years. Subsection (2) prescribes the temporal limit for carry forward ("not being more than eight tax years immediately succeeding the tax year in which such loss was first computed"). Subsection (3) d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ting their absorption against other types of income in subsequent years. The "and so on" phrase signals iterative carry forward until the loss is fully absorbed or the eight-year ceiling is reached. The definition in subsection (3) signals that the clause applies only where the loss remains, in whole or in part, after application of set-off rules u/s 107 for that tax year. Exceptions/Provisos Not stated in the document: any specific provisos, exceptions, or special cases (for example, treatment on transfer of property, amalgamation, or conversion of business) are not included in the clause text provided. No proviso concerning modification, waiver, or alternative treatment is present. Illustrations * Example 1: Tax year T1 - loss from....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s from house property" in subsection (3). * Definition provision: Clause 110 (Bill) expressly defines "unabsorbed loss from house property" in subsection (3). Section 110 (Act) does not include an explicit definition clause for that term in the provided text. * Reference to set-off against other heads: The Act's text explicitly references section 109 for the prior set-off rule ("as per section 109"). The Bill's clause refers to set-off u/s 107 in its definition of "unabsorbed loss" (subsection (3)). Thus each version cross-references a different section number in the provided texts. * Division of carry-forward operation: The Act separates the carry-forward rule and the mechanics into (1)(a) (set off only against income from ho....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... a substantive difference in the set-off scheme elsewhere in the code. Practically, if the referenced section differs in content, taxpayers and departments must consult the correct cross-referenced provision to determine prior set-off rules; mismatches could cause compliance errors until clarified. * Drafting clarity and enforcement: The Act's division into (a) and (b) more explicitly mandates that carry-forward losses are only to be set off against house property income and that any remainder must be carried forward, reducing interpretive questions. The Bill's compact wording accomplishes the same effect but with less granular punctuation; in practice both convey the same operational outcome but the Act's structure may be mar....