Section 71A of Income Tax Act for AY 2023-24

Section 71A of Income Tax Act 1961 amended by Finance Act and Income-tax Rules. Set off of loss under the head Income from house property.

Amended and updated notes on section 71A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to transitional provisions for set off of loss under the head “Income from house property”.

Chapter VI (Sections 66 to 80) of the Income Tax Act 1961 deals with the provisions related to aggregation of income and set off or carry forward of loss. Section 71A of IT Act 1961-2023 provides for transitional provisions for set off of loss under the head “Income from house property”.

Recently, we have discussed in detail section 71 (set off of loss from one head against income from another) of IT Act 1961. Today, we learn the provisions of section 71A of Income-tax Act 1961. The amended provision of section 71A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 71A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-71A: Transitional provisions for set off of loss under the head “Income from house property”

Where in respect of the assessment year commencing on the 1st day of April, 1993 or the 1st day of April, 1994, the net result of the computation under the head “Income from house property” is a loss, such loss in so far as it relates to interest on borrowed capital referred to in clause (vi) of sub-section (1) of section 24 and to the extent it has not been set off shall be carried forward and set off in the assessment year commencing on the 1st day of April, 1995, and the balance, if any, in the assessment year commencing on the 1st day of April, 1996, against the income under any head.


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