Intimation of loss
[Section-291 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
The Assessing Officer shall notify to the assessee by an order in writing the amount of the loss as computed by him for the purposes of section 111(1) or (2) or 112 or 113(2) or 115(1), where––
- (a) in the course of the assessment of the total income of any assessee, it is established that a loss has taken place; and
- (b) the assessee is entitled to have carried forward and set off such loss under the provisions of the said sections.
FAQs on Section 291 of Income Tax Act 2025
What is the purpose of Section 291 of the Income Tax Act, 2025?
Section 291 empowers the Assessing Officer to notify the assessee in writing about the amount of loss computed during assessment for purposes of specified sections, provided certain conditions are satisfied.
Which sections are referred to in Section 291 for the purpose of loss intimation?
Section 291 refers to losses computed for the purposes of Section 111(1), 111(2), 112, 113(2), and 115(1) of the Act.
When will the Assessing Officer issue an order under Section 291?
An order under Section 291 is issued when, during the assessment of total income, it is established that a loss has occurred and the assessee is entitled to carry forward and set off such loss under the relevant sections.
Is the intimation under Section 291 mandatory?
Yes, if the conditions are met, the Assessing Officer shall notify the assessee of the loss by a written order.
What are the two conditions for the issuance of intimation of loss under Section 291?
The two conditions are: (a) a loss is established during the assessment of total income; and (b) the assessee is entitled to carry forward and set off the loss under the applicable provisions.
Does Section 291 apply to all kinds of losses?
No, it applies specifically to losses relevant under Sections 111(1) or (2), 112, 113(2), or 115(1).
Why is a written order important under Section 291?
A written order serves as formal intimation to the assessee and enables legal recognition of the loss for carry forward and set off in subsequent assessment years.
Is prior filing of a return required for claiming loss under this section?
Section 291 does not itself stipulate conditions regarding return filing, but the eligibility for carry forward of loss under sections like 111 and 112 may require timely return filing under other provisions of the Act.
Can the assessee dispute the computation of loss in the order under Section 291?
Yes, the assessee can challenge the computation through appeal or rectification processes as permitted under other provisions of the Act.
What is the significance of the loss intimation for future assessments?
It allows the assessee to claim the loss in future years as a carried forward amount, subject to fulfillment of other applicable conditions in the respective provisions.
