Type of loss to be Income against which For how Should the Is it

carried forward to next carried forward loss many business be necess

year(s) can be set off in years continued ary to
loss can forward submit
be return
carried of loss
next in time
year(s)
1. House property loss Income under the 8 years NA No
(applicable from the head “Income from
assessment year 1999- the house property”
2000)
2.Speculation loss (not Speculation profit 4 years Not Yes
being unabsorbed necessary
depreciation, etc)
3.Non speculation
business loss
3.1 On account of Any income but other No time Not No
unabsorbed income under the limit necessary
depreciation, head “salaries”
capital
expenditure on
scientific research
and family Income from specified No time Yes
planning business under limit Not
3.2 Loss from section 35AD necessary
specified business
under section Any business profit 8 Years Yes
35AD (whether from
speculation or Not
3.3 Other otherwise) necessary
remaining
business loss

4.Capital loss
4.1 Short term Any income under the 8 Years Not Yes
capital loss head “capital gains” necessary

4.2 Long term Long term capital 8 Years Yes

capital loss gains Not
necessary
5.Loss from the activity Income from the 4 years Yes Yes
of owning and activity of owning and
maintaining race horses maintaining race
horses