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Disability definition sets qualifying conditions and severity thresholds for income-tax deductions for specified impairments under tax law.
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Health insurance deduction allowed when employee bears premium paid non-cash and obtains employer certificate confirming the deduction.
A deduction under section 80D is available where the employee has paid medical insurance premiums for himself and/or his family by a non-cash mode; the employee should obtain an employer's certificate confirming deduction of the amount for medical insurance purposes.
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Deduction under section 80D requires payment from taxable income; payments from exempt income or loans disqualify.
Deduction under section 80D is available only where the payment is made out of income chargeable to tax; payments from tax-exempt income or from borrowed funds do not qualify for the deduction.
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Medical insurance deduction under 80D varies by parental senior citizen status, affecting combined family and parental premium allowances.
Deduction under 80D allows an individual who pays medical insurance premiums other than in cash to claim a deduction for premiums for the assessee, spouse and dependent children as one component and for parental premiums as a separate component; the total allowable deduction depends on whether any parent is a senior citizen, with a higher combined deduction if a parent is a senior citizen.
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Deduction under section 80D: contributors who pay health insurance premiums non cash may claim proportional deductions
Contributors who partly pay health insurance premiums may each claim a deduction equal to the amount they actually paid, provided each share is paid directly to the insurer and by a mode other than cash; in such cases each payer may claim the deduction against their respective taxable income.
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Deduction under 80CCG limited by eligible investment percentage and income threshold, with recapture on scheme violation.
Deduction under the Rajiv Gandhi Equity Savings Scheme is computed as a percentage of eligible investments in listed equity shares and equity oriented fund units but is restricted by a monetary ceiling; sale of previously qualifying units can breach scheme conditions and cause partial recapture as taxable income; exceeding the prescribed gross total income threshold disqualifies the taxpayer from claiming the deduction for that year.
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Deduction under section 80CCE limits combined 80C and 80CCC claims for contributions to savings instruments.
Contributions to Public Provident Fund and an annuity policy eligible under Section 80CCC are deductible but subject to the aggregate ceiling under Section 80CCE; when combined eligible deductions across Sections 80C and 80CCC exceed the statutory limit, the deductible amount is restricted to that ceiling and any excess is disallowed.
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Aggregate deduction under section 80CCE limits combined 80C and 80CCC contributions to the statutory overall ceiling.
Contributions to a public provident fund and annuity policy premiums are aggregated and the deductible amount is the lesser of the combined eligible contributions and the statutory aggregate ceiling; when the combined total exceeds that ceiling, the deduction is restricted to the statutory limit.
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Deduction under 80C: eligible life insurance premiums allowed up to policy ceilings; excess disallowed; one policy's maturity taxable.
Deduction under Section 80C allows life insurance premiums up to policy wise ceilings based on a percentage of the sum assured. Policy A (sum assured 200,000) with a ceiling of 20% permits the full 25,000 premium as deductible; Policy B (sum assured 100,000) with a ceiling of 10% permits only 10,000 of the 12,000 premium as deductible. The total deduction equals the aggregate of eligible premiums, and Policy B's maturity proceeds are not exempt from tax.

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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)

1 September, 2025

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Section 110 Carry forward and set off of loss from house property.

Income-tax Act, 2025

At a Glance

Clause 110 of the Income Tax Bill, 2025 - (Old Version) provides for the carry forward and set off of unabsorbed loss from house property. It confines set-off of carried losses to future income from house property and limits carry forward to eight subsequent tax years. It affects taxpayers with losses under the head "Income 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) defines "unabsorbed loss from house property" as the loss computed under that head which has not been, or is not wholly, set off against income from any other head u/s 107 for that tax year. Context: Not stated in the document beyond the clause text. Coverage: losses under "Income from house property" only.

Statutory Provision Mode

Text & Scope

The clause applies where a loss is computed under the specific head "Income from house property" for a tax year but is not wholly set off against income under other heads in that year. Such unabsorbed loss shall be carried forward to the subsequent tax year and may be set off only against income from house property computed for that subsequent tax year. This process may be continued ("and so on") subject to the overall temporal limit. The carry-forward is restricted to a maximum of eight tax years immediately succeeding the tax year in which the loss was first computed. The clause also supplies a definition: "unabsorbed loss from house property" means the loss under that head which has not been, or is not wholly, set off against income from any other head u/s 107 for the said tax year.

Interpretation

The textual intent is to limit cross-head utilization of house property losses and to preserve them for future house property income. The restriction "set off only against income from house property" indicates a legislative policy that losses originating in the house property head are to be ring-fenced to similar income streams, preventing 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 house property = Rs X; set off against other heads u/s 107 = Rs Y; residual unabsorbed loss = Rs (X-Y). In tax year T2, the unabsorbed loss Rs (X-Y) may be set off only against house property income for T2. (All numeric specifics Not stated in the document.)

  • Example 2: If after set-off in year T2 some residual loss remains, it may be carried forward to T3 and set off only against house property income in T3, continuing up to eight succeeding tax years from T1.

Interplay

The clause explicitly references section 107 for the definition of "unabsorbed loss from house property" - suggesting interplay with the provisions governing intra-year set-off of losses. No other Rules, Notifications, or Circulars are mentioned in the clause. Any interpretive interaction with other sections of the income tax statute (beyond section 107) is Not stated in the document.

Differences between Section 110 of the Income-tax Act, 2025 and Clause 110 of the Income Tax Bill, 2025 - (Old Version)

  • Structural wording and terminology: The Act's Section 110 (Document 1) uses the phrasing "Where for any tax year, loss computed under the head 'Income from house property' cannot be wholly set off against the income under any other head as per section 109," and specifies carry forward and iterative set-off mechanics in two subsections (1)(a) and (1)(b). The Bill's Clause 110 (Document 2) refers to "The unabsorbed loss from house property for any tax year" and defines "unabsorbed loss 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 house property) and (1)(b) (if not wholly set off carry forward further). The Bill states the rule in one sentence and uses "and so on" to indicate repetition; it is simpler and the iterative mechanism is not broken into discrete clauses.
  • Temporal phrasing for time-limit: Both texts limit carry forward to eight tax years immediately succeeding the tax year in which the loss was first computed. The Act states "No loss shall be carried forward under this section for more than eight tax years immediately succeeding the tax year for which the loss was first computed." The Bill states, "not being more than eight tax years immediately succeeding the tax year in which such loss was first computed." Substantively the time-limit appears identical.

Practical impact of each difference

  • Presence of explicit definition in the Bill: Clause 110's explicit definition of "unabsorbed loss from house property" clarifies the reference point for what may be carried forward and avoids interpretive ambiguity about whether partial set-off against other heads at the same year affects carry forward. The Act's omission of an explicit definition in the provided text may require reliance on other sections or ordinary meaning to determine the same concept, potentially creating minor drafting uncertainty.
  • Different cross-references (section 109 vs section 107): The Act's reference to section 109 and the Bill's reference to section 107 (in the definition) may reflect renumbering or 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 marginally clearer for compliance and adjudication.
  • No substantive change to the eight-year limit: Both texts impose the same eight-year ceiling; therefore, no practical change arises on the temporal limit for carry forward.

Practical Implications

  • Compliance and risk areas: Taxpayers must track the computation year of house property losses and the portion that remains unabsorbed after application of section 107 in that year, since only the unabsorbed portion qualifies for carry forward. Misapplication of set-off against non-house-property income in subsequent years would be contrary to the explicit limitation and could attract reassessment risk. Record-keeping to evidence prior-year set-off u/s 107 is essential.
  • Record-keeping/evidence points: Maintain clear records of yearwise computation of house property loss, particulars of set-off applied u/s 107 in the year of computation, and yearwise set-off against house property income in subsequent years showing progressive absorption. Documentation demonstrating the origin year of the loss will be necessary to enforce the eight-year limit and to support position in assessments or appeals.

Key Takeaways

  • Clause 110 confines carry-forwarded house property losses to set-off only against future house property income.
  • Carry forward is permitted for up to eight tax years immediately succeeding the year of computation.
  • The clause defines "unabsorbed loss from house property" by cross-reference to set-off u/s 107 for the year of computation.
  • No exceptions, provisos, or interactions with other statutory mechanisms (beyond section 107) are specified in the clause.
  • Taxpayers must carefully document the computation and set-off chronology to comply and to preserve the ability to claim carry forward within the eight-year window.

Full Text:

Section 110 Carry forward and set off of loss from house property.

Topics

Acts Income Tax