Restriction on set-off of loss from house property
35. Restriction on set-off of loss from house property.
35.1 Section 71 of the Income-tax Act relates to set-off of loss from one head against income from another.
35.2 In line with the international best practices, a new sub-section (3A) has been inserted in the said section to provide that set-off of loss under the head ‚Income from house property‛ against any other head of income shall be restricted to two lakh rupees for any assessment year. However, the unabsorbed loss shall be allowed to be carried forward for set-off in subsequent years in accordance with the provisions of the Income-tax Act.
35.3 Applicability: This amendment takes effect from 1st April, 2018 and will, accordingly apply from assessment year 2018-19 and subsequent years.
Study Material for Income Tax on House Property