Section-109: Set off of losses under any other head of income

Section-109 : Set off of losses under any other head of income

Section-109 provides for set off of losses under any other head of income in the manner provided therein. Learn to understand the section-109 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-109 as per act

Subject to the provisions of this Chapter, for any tax year, if income computed under any head of income (other than "Capital gains") is a loss, such loss shall be set off against income of the assessee under any other head, including "Capital gains", if any, assessable for that tax year, subject to the following conditions:––
1. loss under the head "Profits and gains of business or profession" shall not be set off against income chargeable under the head "Salaries"; and
2. loss under the head "Income from house property" shall be set off to the extent of two lakh rupees against income under any other head;
For any tax year, the loss under the head "Capital gains" shall not be set off against income under any other head.