Loss Set-Off & Carry Forward Calculator

Calculate Loss Set-Off & Carry Forward

Total Loss Amount (A) :

Total Set-Off Amount (B):

Carry Forward Loss (C= B-A):

Set-Off Summary

Income Type	Income Amount	Set-Off Amount	Income after Set-off	Remaining Loss^*
{{ step.incomeType }} ^#	{{ step.orgIncAmt.toLocaleString("en-IN") }}	{{ step.setOffAmount.toLocaleString("en-IN") }}	{{ step.incomeAmt.toLocaleString("en-IN") }}	{{ step.remainingLoss.toLocaleString("en-IN") }}

^# Salary income would never participate during loss set-off except against rental loss from house property . All amounts in Rs.

Analysis on Loss Set-Off

You have a total loss of Rs. {{lossAmount.toLocaleString("en-IN")}} under the income source {{getLossIncomeLabel()}}
The loss is set off against {{ (step.setOffAmount>0)?(step.incomeType +','):'' }}
Loss from {{getLossIncomeLabel()}} cannot be set off or carried forward
Loss from {{getLossIncomeLabel()}} can be set off internally but cannot set off with other income or carried forward
The carry forward loss can be set off against {{getLossIncomeLabel()}} Income and Long term Capital gain Income
The remaining loss can be carry forward upto 8 years i.e, {{ carryForwardLossYear }} years
The remaining loss can be carry forward upto 4 years i.e, {{ carryForwardLossYear }} years
You need to file income tax return within due date i.e., 31^st July {{updateDueDate()}} (Non-Audit) or 31^st Oct {{updateDueDate()}} to set-off and carryforward losses.

Next Steps:

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Refer Frequently asked Questions (FAQs) on Capital Loss Set-Off Calculator below.

Frequently asked Questions

1. What is "Set-Off" of losses?

"Set-off" refers to the process of offsetting losses against profits derived from a different source or category of income within the same assessment year (financial year).

2. What is "Carry Forward" losses?

If losses cannot be set-off in the same year due to insufficient eligible profit, they are carried forward to the subsequent assessment year for adjustment against the eligible profit of that year.

3. What is the maximum number of years that the losses can be carried forward?

The Act of 1961 stipulates the maximum duration for which various losses may be carried forward for set-off. Losses from various categories, excluding intra-head losses, can be carried forward for a maximum of eight years. Losses from intra-head and racehorses can be carried forward for a period of up to four years.

4. How can I claim the benefit of set off loss and carry forward?

Filing your income tax return allows for the utilization of set off losses and the carry forward of losses. But you cannot claim the benefit without filing income tax returns

5. Seems complicate to understand, how should I handle set-offs during ITR filing?

Income tax filing portals such as EZTax.in generally automate the offsetting of eligible losses, including those carried forward from prior financial years, against various income heads during the process of filing taxes. Therefore, it is no necessary to memorize all these rules.

This calculator aims to assess the potential for loss set-off prior to submitting your tax return, facilitating appropriate planning.

For example, A stock market trader seeks to understand how previous year losses can be utilized to offset income tax liabilities, thereby informing decisions regarding the sale of stocks or trading in derivatives.