74. Losses under the
head “Capital gains”.- (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.]
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