Section 73A of Income Tax Act for AY 2023-24

Section 73A of Income Tax Act 1961 amended by Finance Act 2022 & Income-tax Rules. Carry forward and set off of losses by specified business.

Amended and updated notes on section 73A 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 carry forward and set off of losses by specified business.

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 73A of IT Act 1961-2023 provides for carry forward and set off of losses by specified business.

Recently, we have discussed in detail section 73 (losses in speculation business) of IT Act 1961. Today, we learn the provisions of section 73A of Income-tax Act 1961. The amended provision of section 73A 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 73A 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-73A: Carry forward and set off of losses by specified business

Section 73A(1) of Income Tax Act

Any loss, computed in respect of any specified business referred to in section 35AD shall not be set off except against profits and gains, if any, of any other specified business.

Section 73A(2) of Income Tax Act

Where for any assessment year any loss computed in respect of the specified business referred to in sub-section (1) has not been wholly set off under sub-section (1), so much of the loss as is not so set off or the whole loss where the assessee has no income from any other specified business, shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and—

  • (i) it shall be set off against the profits and gains, if any, of any specified business carried on by him assessable for that assessment year; and
  • (ii) 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.


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