Set Off and Carry Forward Losses

Harnessing Losses for Tax Efficiency Strategy to minimize tax burden by utilizing losses. Key tactic in effective income tax planning. Understanding Loss Set Off Offset losses against current year's income. Unutilized losses can be carried forward.

Intra-Head Set Off Offset losses within the same income category. Utilize losses against other sources within the same category. Inter-Head Set Off Adjust losses from one income category against profits from another. Flexibility to offset losses against diverse sources of income.

Methodology for Loss Set Off Business Loss: Set off against any income except salary. Capital Gains Loss: Adjusted against corresponding capital gains. Carrying Forward Losses Unused losses carried forward to future years. Specific time limits for different types of losses.

Example of Loss Set-Off Sequential utilization of losses against various incomes. Exemplifies the practical application of set-off rules. Tax Implications of New Regime Changes in set-off rules under Section 115BAC. Impact on house property losses and business losses.