Just a moment...

⚠✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Keyword Search :
AI Tools : New
Ask tax questions in natural language. Powered by AI trained on the TaxTMI legal database. Use AI Tools ➞
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
    6. Text Search
  6. The system will try to fetch results that contains ALL your words.
  7. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
    8. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search ❯
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    ManualsIncome Tax
    What is the minimum donation limit to get tax deduction u/s 80GGA?
    ManualsIncome Tax
    What are the conditions to claim deduction u/s 80GG?
    ManualsIncome Tax
    Is loan taken in name of any family member is eligible for deduction u/s 80E?
    ManualsIncome Tax
    What is the main difference between deduction u/s 80U & u/s 80DD of the Act?
    ManualsIncome Tax
    Can a taxpayer claim deduction u/s 80DD for himself?
    ManualsIncome Tax
    Whether deduction u/s 80D is allowed if expenditure is made in cash?
    ManualsIncome Tax
    Can an individual pay medical insurance premium for spouse and claim deduction u/s 80D?
    ManualsIncome Tax
    Can a Guardian claim tax benefit u/s 80CCG if investment is done in the name of Minor?
    ManualsIncome Tax
    Can a non resident individual join NPS u/s 80CCD?
    ManualsIncome Tax
    Whether deduction u/s 80CCC is allowed only to the resident individuals?
    ManualsIncome Tax
    Whether education fees can be claimed as deduction u/s 80E and 80C both?
    ManualsIncome Tax
    Whether the post office savings scheme is eligible for deduction u/s 80C?
    ManualsIncome Tax
    Whether the repayment of loan taken for renovation/repair of house property is eligible for deductio...
    ManualsIncome Tax
    Whether section 80C allows deduction on re payment of housing loan?
    ManualsIncome Tax
    What kind of deduction is available for deduction u/s 80C?
    ManualsIncome Tax
    Who can take the benefit u/s 80C?
    ManualsIncome Tax
    While clubbing income of minor with the parent's income, the investment made by the minor u/s 80C al...
    ManualsIncome Tax
    Can a self employed individual claim the benefit of HRA u/s 10(13A)?
    ManualsIncome Tax
    Does actual payment of rent is required to claim HRA deduction u/s 10(13A)?
    ManualsIncome Tax
    Whether an employee is allowed deduction u/s 10(13A) even if he owns a house property?
❮
❯
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Open Link
    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    ManualsIncome Tax
    What is the minimum donation limit to get tax deduction u/s 80GGA?
    Show AI Summary
    Tax deduction under 80GGA allows any donation amount for scientific research or rural development to be claimed.
    Section 80GGA provides a tax deduction for sums donated for specified purposes of scientific research or rural development; there is no prescribed minimum donation threshold and any amount paid for the specified purpose is eligible for deduction.
    ManualsIncome Tax
    What are the conditions to claim deduction u/s 80GG?
    Show AI Summary
    Deduction under 80GG: individuals paying rent must submit Form 12BA to claim a rent deduction.
    An individual who pays rent for residential accommodation may claim deduction in respect of rent paid provided the claimant submits a written declaration in Form 12BA to the assessing officer asserting entitlement; the deduction is contingent on both actual rent payment and timely submission of the prescribed declaration.
    ManualsIncome Tax
    Is loan taken in name of any family member is eligible for deduction u/s 80E?
    Show AI Summary
    Deduction under section 80E not available if education loan is taken in a family member's name.
    Deduction under section 80E for interest on higher education loans is available only where the assessee is the named borrower; loans taken in the name of a relative or other family member do not qualify for the deduction, because the borrower identity is the operative condition for entitlement.
    ManualsIncome Tax
    What is the main difference between deduction u/s 80U & u/s 80DD of the Act?
    Show AI Summary
    Disability deduction: dependent relief under one provision versus taxpayer's own deduction under the other provision.
    Section 80DD provides a deduction for maintenance, including medical treatment, of a handicapped dependent claimed by the taxpayer, whereas Section 80U provides a deduction available to the taxpayer who is himself or herself a person with disability; the key distinction is whether the deduction is for a dependent or for the disabled taxpayer.
    ManualsIncome Tax
    Can a taxpayer claim deduction u/s 80DD for himself?
    Show AI Summary
    Section 80DD deduction applies only for maintenance of a disabled dependent, not for the taxpayer's own disability.
    Deduction under 80DD permits an income tax deduction for maintenance, including medical treatment, of a handicapped dependent who is a person with disability; the deduction is available for expenditure in respect of such a dependent and is not available to a taxpayer for his or her own disability-related expenses.
    ManualsIncome Tax
    Whether deduction u/s 80D is allowed if expenditure is made in cash?
    Show AI Summary
    Deduction under section 80D denied for cash payments; only preventive health checkup expenses may be paid in cash.
    Deduction for medical insurance premia under deduction u/s 80D is not available where the expenditure is made in cash; payments must be by non-cash modes to qualify, except that expenditure on preventive health checkups may be incurred in cash and still qualify for the deduction.
    ManualsIncome Tax
    Can an individual pay medical insurance premium for spouse and claim deduction u/s 80D?
    Show AI Summary
    Medical insurance premium deduction allowed when an individual pays for spouse, self and dependents under section 80D.
    An individual is entitled to claim a deduction for premiums paid for medical insurance covering the individual, the spouse, dependent children and parents under the medical insurance premium deduction framework; premiums paid by an individual for insurance on the health of those family members qualify for deduction.
    ManualsIncome Tax
    Can a Guardian claim tax benefit u/s 80CCG if investment is done in the name of Minor?
    Show AI Summary
    Tax benefit under 80CCG: guardian may claim deduction for investments made in a minor's name, subject to individual limits.
    A guardian who makes investments in a minor's name may claim the deduction under 80CCG, subject to the overall deduction limit applicable to the guardian as an individual and compliance with the scheme's conditions.
    ManualsIncome Tax
    Can a non resident individual join NPS u/s 80CCD?
    Show AI Summary
    Non-resident individuals joining NPS: eligible to open accounts, but accounts close if citizenship changes under pension deduction rules.
    Non resident individuals may join the National Pension System and make contributions eligible for pension contribution deduction under income tax provisions; however, an NPS account will be closed if the member's citizenship status subsequently changes, affecting continued participation and account maintenance.
    ManualsIncome Tax
    Whether deduction u/s 80CCC is allowed only to the resident individuals?
    Show AI Summary
    Deduction under section 80CCC can be claimed by non-resident individuals contributing to pension funds under the statute.
    The provision permits a deduction for contributions to pension funds and does not impose a residency restriction, so non-resident individuals who make qualifying contributions to pension funds are eligible to claim the deduction under the section.
    ManualsIncome Tax
    Whether education fees can be claimed as deduction u/s 80E and 80C both?
    Show AI Summary
    Education loan interest deductible for borrower; tuition fee relief limited to two children under a separate deduction.
    Only interest paid on an education loan for the taxpayer or a dependent qualifies under the education-loan interest deduction head, while tuition fees qualify under a separate tuition-fee deduction head and are restricted to tuition paid for a limited number of children; the two deductions are distinct and non-overlapping.
    ManualsIncome Tax
    Whether the post office savings scheme is eligible for deduction u/s 80C?
    Show AI Summary
    Deduction under section 80C: Post Office five year time deposit qualifies as an eligible investment for deduction.
    Contributions to the Post Office five year time deposit scheme are eligible to be claimed as a deduction under section 80C, and may be included among other specified investments such as life insurance premiums, deferred annuities and provident fund contributions, subject to the overall limits and conditions applicable to 80C deductions.
    ManualsIncome Tax
    Whether the repayment of loan taken for renovation/repair of house property is eligible for deductio...
    Show AI Summary
    Section 80C deduction excludes loan repayments for renovation or repair of residential property under income tax law.
    Repayments of loans taken for renovation or repair of residential property are not eligible for deduction under deduction under section 80C, which is confined to specified savings and investment outlays such as life insurance premiums, deferred annuities and provident fund contributions and does not include repair or renovation costs of a dwelling.
    ManualsIncome Tax
    Whether section 80C allows deduction on re payment of housing loan?
    Show AI Summary
    Deduction under section 80C: repayment of principal on housing loan qualifies, interest payments do not.
    Payments toward the cost of purchase or construction of a new residential property qualify for deduction under the provision and expressly include repayment of the principal amount of a housing loan; interest paid on such a housing loan is not eligible for deduction under the same provision.
    ManualsIncome Tax
    What kind of deduction is available for deduction u/s 80C?
    Show AI Summary
    Deduction under section 80C covers life insurance, provident fund and deferred annuity contributions and limited tuition fees.
    Deduction under section 80C permits tax deductions for specified savings and insurance instruments such as life insurance premia, provident fund contributions and deferred annuities, subject to statutory limits and qualifying conditions. Only tuition fees paid in India for full time education of up to two children qualify as deductible educational expenses; other charges like development fees or donations are not eligible.
    ManualsIncome Tax
    Who can take the benefit u/s 80C?
    Show AI Summary
    Deduction under section 80C available only to individuals and HUFs for life insurance and provident fund contributions.
    The provision permits deduction for life insurance premia, deferred annuity premiums and contributions to provident funds, available exclusively to Individual and HUF taxpayers as the classes eligible to claim the tax benefit.
    ManualsIncome Tax
    While clubbing income of minor with the parent's income, the investment made by the minor u/s 80C al...
    Show AI Summary
    Clubbing of minor income: investments made by the minor qualifying for investment-based deductions may be claimed when income is clubbed.
    When a minor's income is clubbed with a parent's income, investments made by the minor that qualify under the investment-based deduction framework-including life insurance premiums, provident fund contributions, and deferred annuity payments-may be considered as deductible in computing the parent's taxable income.
    ManualsIncome Tax
    Can a self employed individual claim the benefit of HRA u/s 10(13A)?
    Show AI Summary
    HRA exclusion for self-employed; rent deduction available under section 80GG if statutory eligibility conditions are met.
    HRA under section 10(13A) is a salary-linked exemption not available to self-employed individuals; self-employed taxpayers may claim a deduction for rent paid under section 80GG, subject to the statutory eligibility conditions and limits governing that deduction.
    ManualsIncome Tax
    Does actual payment of rent is required to claim HRA deduction u/s 10(13A)?
    Show AI Summary
    Actual rent payment required for HRA deduction - absence of rent payment for any period disqualifies entitlement to deduction.
    The House Rent Allowance deduction under section 10(13A) is conditional on actual rent payment for residential accommodation; if no rent is paid for any period, no deduction is allowable for that period, and entitlement to HRA or notional occupancy does not replace the need for real rent outgo.
    ManualsIncome Tax
    Whether an employee is allowed deduction u/s 10(13A) even if he owns a house property?
    Show AI Summary
    Deduction under section 10(13A) available despite house ownership when employee resides in rented accommodation.
    An employee who actually resides in rented accommodation may claim the salary-specific exemption for rent allowance under section 10(13A) even if he owns a house property in the same or a different city; entitlement depends on factual occupancy of rented premises rather than mere ownership of residential property.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Home› TMI Notes › Income Tax › Act-Rules › Category › This
      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters
      Income Tax

      Comparison of Section 115 "Set off and carry forward of losses from specified activity." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      2 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Print Options

      Section 115 Set off and carry forward of losses from specified activity.

      Income-tax Act, 2025

      At a Glance

      This document is the old version of Clause 115 of the Income Tax Bill, 2025 (entitled "Set off and carry forward of losses from specified activity") as compared to Section 115 of the Income-tax Act, 2025. It governs the manner in which losses arising from the activity of owning and maintaining race horses may be set off and carried forward. The rule primarily affects taxpayers engaged in the specified activity (owners/maintainers of race horses) and the tax administration. Effective date or decision date: Not stated in the document.

      Background & Scope

      Statutory hooks: Clause 115 of the Income Tax Bill, 2025 (Old Version) addresses "set off, or carry forward and set off of losses" specifically for the "specified activity" defined as owning and maintaining race horses. The provision establishes the scope of set off (against income from the same specified activity only), the carry forward regime for unabsorbed losses, the temporal limit for carry forward (four succeeding tax years), and specific definitions related to stake money, loss computation, and race horses. The text provides definitions for key terms (see clause sub-section (4)).

      Statutory Provision Mode

      Text & Scope

      Clause 115 governs losses from a narrowly defined activity: owning and maintaining race horses. Key elements: (1) prohibition on setting off such losses against income other than income from the specified activity in the same tax year; (2) carry forward of unabsorbed loss to subsequent year(s), available only to be set off against income from the specified activity in the year(s) when that activity is carried on by the assessee; (3) carry forward limited to four tax years immediately succeeding the year in which the loss was first computed; (4) definitions of "income by way of stake money", "loss incurred by the assessee in the specified activity", "race horse", "specified activity", and "unabsorbed loss from the specified activity".

      Interpretation

      The text evidences a legislative intent to ring-fence losses arising from race-horse ownership - preventing cross-subsidy of other income streams with losses from this activity. Interpretive principle indicated: losses attributable to the specified activity are to be matched to income from the same activity and may be deferred for a limited period only. The clause's explicit definitions constrain the scope of losses and the class of horses/activities covered.

      Exceptions/Provisos

      No express exceptions beyond the stated rule are contained in Clause 115. The clause does not provide any proviso allowing cross-set off, nor any alternative treatment for amalgamations, transfer of business, or change in ownership. "Only when the specified activity is carried on by the assessee in that tax year" conditions availability of set off - effectively an operational proviso. Other exceptions: Not stated in the document.

      Illustrations

      • Example 1: An assessee incurs a loss of X in tax year N from owning race horses and has no stake money income in year N. Under Clause 115, the loss cannot be set off against other incomes in year N and will be carried forward as an "unabsorbed loss" to year N+1 and may be set off only against stake-money income of the specified activity in N+1, and only if the assessee carries on that activity in N+1.
      • Example 2: If the assessee carries forward the loss for four succeeding tax years and by the end of the fourth succeeding year there remains an unabsorbed amount, that unabsorbed loss cannot be further carried forward (i.e., it expires after four years).

      Interplay

      Clause 115 operates as a specific rule for race-horse activity; the document does not state how it interacts with other provisions, such as general set-off/carry-forward rules, clubbing provisions, transfer pricing, or provisions applicable on change of ownership. Interplay with rules, notifications, or circulars: Not stated in the document.

      Differences between Section 115 of the Income-tax Act, 2025 and Clause 115 of the Income Tax Bill, 2025 - (Old Version) and Practical Impact

      • Placement and Wording of Prohibition on Cross-set off: - Bill (Old Version) Clause 115(1) states expressly that loss from specified activity "shall not be set off against the income, if any, from any source other than specified activity for the said tax year." - Act Section 115(1) states the converse positive rule: "Any loss incurred by the assessee in specified activity in any tax year shall be set off only against income from specified activity."
        • Practical impact: Substantively both formulations express the same limitation (losses cannot be set off against other income). The Act's positive phrasing ("shall be set off only against") may be marginally clearer for computation language; the Bill's negative phrasing ("shall not be set off against") emphasises the prohibition. No substantive change in tax outcome is apparent from wording alone.
      • Carry Forward Mechanism and Language: - Bill Clause 115(2) uses "unabsorbed loss ... shall be carried forward to the subsequent tax year and shall be set off ... only against the income from specified activity" and additionally conditions set off "only when the specified activity is carried on by the assessee in that tax year." - Act Section 115(2) describes a stepwise carry forward: if loss cannot be wholly set off under sub-section (1), it "shall be carried forward ... and (i) be set off against the income, if any, of the specified activity carried on by him for such tax year; and (ii) if the loss cannot be wholly so set off, the amount ... shall be carried forward" iteratively.
        • Practical impact:The Act retains the Bill's substance but provides sequential mechanics (set off then carry forward) in enumerated sub-clauses. The Bill expressly conditions set off on the assessee carrying on the specified activity in that subsequent year; the Act mirrors that by requiring "income ... of the specified activity carried on by him for such tax year." Substance is equivalent; Act's structured wording clarifies operational sequence for practitioners preparing computations.
      • Temporal Limit on Carry Forward: - Both texts limit carry forward to four tax years following the year of computation (Clause 115(3) Bill and Section 115(3) Act). Wording is substantively identical.
        • Practical impact: No change; loss expiry remains the same period.
      • Definitions/Glossary Differences: - Both texts define "income by way of stake money", "loss incurred ...", "specified activity" and relate to race horses. Differences in phrasing: Bill defines "race horse" as "a horse upon which wagering or betting may be lawfully made in a horse race"; Act defines "horse race" and "race horses" separately and explicitly includes "horse race upon which wagering or betting may be lawfully made" and "horses owned and maintained by assessee for running in a horse race." - Bill includes an additional defined term "unabsorbed loss from the specified activity" absent from the Act text.
        • Practical impact: The Act breaks out terms slightly differently (introducing "horse race", "race horses") potentially aiding clarity on the subject-matter; the Bill's explicit definition of "unabsorbed loss" provides a specific label for losses carried forward in that clause. Functionally, definitions align closely; no substantive change to tax treatment is evident.
      • Stylistic and Structural Reordering: - The Act presents definitions under subsection (4) and enumerates subparagraphs (a)-(e) with slightly different ordering and labelling; the Bill uses similar subparagraphs (a)-(e).
        • Practical impact: Purely drafting/formatting differences without substantive divergence in tax consequences.

      Practical Implications

      • Compliance and risk areas: Taxpayers engaged in the specified activity must ensure losses from race-horse activity are identified separately and not set off against other income streams in the same year. Risk arises if losses are erroneously set off against other income sources or carried forward beyond four years.
      • Record-keeping/evidence points: The text implies the need to maintain distinct records showing stake money receipts, expenditure incurred wholly and exclusively for maintaining race horses (non-capital), and proof that the specified activity was carried on in subsequent years (to claim set off). The clause does not prescribe specific documentary norms or forms. Procedural requirements: Not stated in the document.

      Key Takeaways

      • Losses from owning and maintaining race horses are ring-fenced and may only be set off against income from the same specified activity in the relevant year.
      • Unabsorbed loss may be carried forward but only to be set off against future income from the specified activity and only when that activity is carried on by the assessee in the subsequent year(s).
      • Carry forward period is limited to four tax years immediately succeeding the year in which the loss was first computed.
      • Key definitions narrow scope: "income by way of stake money", "loss incurred", "race horse", and "specified activity".
      • The clause does not state exceptions, transitional rules, procedural formalities, or interactions with other tax provisions.

      Full Text:

      Section 115 Set off and carry forward of losses from specified activity.

      Topics

      ActsIncome Tax
      Next ➔