Section 73A of Income Tax Act "Carry forward and set off of losses by specified business"
73A. (1) Any loss, computed in respect of any specified
business referred to in section 35AD shall not be set off
except against profits and gains, if any, of any other
specified business.
(2) Where for any assessment year any loss computed in
respect of the specified business referred to in sub-section
(1) has not been wholly set off under sub-section (1), so
much of the loss as is not so set off or the whole loss
where the assessee has no income from any other specified
business, shall, subject to the other provisions of this
Chapter, be carried forward to the following assessment
year, and-
(i) it shall be set off against the profits and
gains, if any, of any specified business carried on by him
assessable for that assessment year; and
(ii) if the loss cannot be wholly so set off, the amount of
loss not so set off shall be carried forward to the
following assessment year and so on.
74. (1) Where in respect of any assessment year, the net
result of the computation under the head "Capital gains" is
a loss to the assessee, the whole loss shall, subject to the
other provisions of this Chapter, be carried forward to the
following assessment year, and-
(a) in so far as such loss relates to a short-term capital
asset, it shall be set off against income, if any, under the
head "Capital gains" assessable for that assessment year in
respect of any other capital asset;
(b) in so far as such loss relates to a long-term capital
asset, it shall be set off against income, if any, under the
head "Capital gains" assessable for that assessment year in
respect of any other capital asset not being a short-term
capital asset;
(c) if the loss cannot be wholly so set off, the amount of
loss not so set off shall be carried forward to the
following assessment year and so on.
(2) No loss shall be carried forward under this section for
more than eight assessment years immediately succeeding the
assessment year for which the loss was first computed.
(3) [Omitted by the Finance Act, 2002, w.e.f. 1-4-2003.]