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    Set off and carry forward of losses under the head "Income from Other Sources" allows: 1) Losses from one source can be set off against income from another source under the same head. 2) Losses can also be set off against income under other heads. 3) If losses cannot be set off under the same or other heads, they cannot be carried forward to future years.

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    Set off and carry forward of losses under the head "Income from Other Sources" allows: 1) Losses from one source can be set off against income from another source under the same head. 2) Losses can also be set off against income under other heads. 3) If losses cannot be set off under the same or other heads, they cannot be carried forward to future years.

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    Uploaded by

    Rahul
    Set off and carry forward of losses under the head "Income from Other Sources" allows: 1) Losses from one source can be set off against income from another source under the same head. 2) Losses can also be set off against income under other heads. 3) If losses cannot be set off under the same or other heads, they cannot be carried forward to future years.

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    Question 14 [Imp.

    ]: Write short note on Set Off and Carry Forward of loss arising under the head
    “Income from Other Sources”. Answer: Set Off and Carry Forward of Losses under the head “Income
    from Other Sources” As per section 70, if there is loss in one source under the head other sources,
    such loss can be set off from income of any other source under the same head. However, as per
    section 58(4), no deduction or set off shall be allowed from the income by way of any winnings from
    lotteries, crossword puzzles, races including horse races, card games, and other games of any sort or
    from gambling or betting of any form whatsoever. As per section 71, if the loss can not be set off
    under the same head, it can be set off from the incomes of other heads. If the loss can not be set off
    even from the incomes of other heads, its carry forward is not allowed. e.g. (i) Mr. X has loss under
    the head other sources `2,00,000 and income under the head other sources `5,00,000, in this case
    loss is allowed to be setoff. (ii) Mr. X has loss under the head other sources `2,00,000 and income
    under the head house property `5,00,000, in this case loss is allowed to be setoff. (iii) Mr. X has loss
    under the head other sources `2,00,000 and income from owning and maintaining of race horses
    `5,00,000, in this case loss is allowed to be setoff. (iv) Mr. X has loss under the head other sources
    `2,00,000 but do not have income under any other head, in this case carry forward of loss is not
    allowed. Illustration 4: Mr. X has taken a loan of `1,00,000 @ 10%. The amount was invested by him
    in th

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