Carry-forward & Set-off of Losses
Set off the year's losses head by head in the legal order, and see the total income and the loss carried forward to future years (sections 70–74).
Switch calculator — current: Carry-forward & set-off of losses
Your details
Enter a loss as a negative number and income as positive. Brought-forward losses are entered as positive amounts.
Current year — business & other heads
Current year — capital gains
Brought-forward losses (earlier years)positive amounts
Your answer
₹ —
Still needed: at least one income or loss figure.
- The figure, and how it compares where there is a choice
- Every step of the working, line by line
- The exact sections, with links to read them
For guidance only — not tax advice. Every figure is drawn from BharatX’s verified rule book, with the sections and rules shown alongside it.
Carry-forward & set-off of losses: how it works and FAQs
FY 2025-26 (Income-tax Act 1961) and FY 2026-27 (Income-tax Act 2025) · Updated
How it works
When a head of income makes a loss, you set it off — first within the same head, then against other heads in the order the law allows — and whatever cannot be set off this year is carried forward to future years.
When a head of income makes a loss, you set it off — first within the same head, then against other heads in the order the law allows — and whatever cannot be set off this year is carried forward to future years. This tool runs that full set-off across business (normal, speculative, specified), capital gains, other sources and unabsorbed depreciation/allowance, plus any losses brought forward, and shows your total income and the loss carried forward.
- Split each head into its income and loss parts; set off within the head first.
- Set off remaining losses across heads in the legal order (the house-property set-off against other heads is capped at ₹2,00,000 a year).
- Absorb brought-forward losses against the remaining current-year income.
- Report the total income (TYCI) and every residual loss to carry forward.
Worked example
Total income ₹30,000; nothing carried forward.
A normal business loss of ₹50,000 with ₹80,000 of income from other sources.
- The ₹50,000 business loss is set off against the other-source income.
- Current-year business total nets to ₹0.
Total income ₹30,000; nothing carried forward.
Frequently asked questions
How do I enter a loss?
As a negative number for that head; income is positive. Brought-forward losses are entered as positive amounts.
Which losses can be carried forward and for how long?
Broadly: business losses 8 years, speculative 4, capital losses 8, house-property 8, unabsorbed depreciation indefinitely — each with its own set-off rules.
Every figure the calculator shows lists the sections it relies on under “Legal basis”. For guidance only — not tax advice.