Amendment of section 71.
31. In section 71 of the Income-tax Act, after sub-section (3), the following sub-section shall be inserted with effect from the 1st day of April, 2018, namely:-
‘(3A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment year, the net result of the computation under the head “Income from house property” is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to set off such loss, to the extent the amount of the loss exceeds two lakh rupees, against income under the other head.’.
Notes on Clauses:
Clause 31 of the Bill seeks to amend section 71 of the Income-tax Act relating to set off of loss from one head against income from another.
It is proposed to insert a new sub-section (3A) in the aforesaid section to provide that notwithstanding anything contained in sub-section (1) or sub-section (2) of the said section, 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.
This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-2019 and subsequent years.
