The Statutory Brief

IT Act 1961 → 2025 / Section 70 / 71

Losses

Section 70 / 71 → Section 108

Set-off of losses in the same year: within a head and across heads

Section 70 / 71 of the old Income-tax Act, 1961 · new section 108 under the Income-tax Act, 2025

New reference Section 108 (70); 109 (71)

Income-tax Act, 1961Section 70 / 71

  • 70: intra-head set-off; STCL against any gain, LTCL only against LTCG
  • 71: inter-head set-off; business loss not against salary
  • House property loss set-off capped at ₹2 lakh
  • Capital loss cannot be set off against other heads

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 108 (70); 109 (71)

  • Intra-head set-off: section 108
  • Inter-head set-off: section 109
  • ₹2,00,000 cap on house property loss against other heads
  • Business loss not against salary; capital loss only within capital gains

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered; rules unchanged.

Practice notes

  • Under the new regime, house property loss on self-occupied property is generally not available for set-off.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the limit for setting off house property loss under the new Income Tax Act 2025?

₹2 lakh against other heads, under section 109(1)(b); the balance is carried forward for 8 years under section 110.

What is section 70 / 71 called in the new Income-tax Act, 2025?

Section 70 / 71 of the Income-tax Act, 1961 corresponds to Section 108 (70); 109 (71) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 70 / 71 under the new Income Tax Act?

Renumbered; rules unchanged.

Is section 70 / 71 still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 70 / 71 of the 1961 Act. Section 108 (70); 109 (71) of the 2025 Act applies from tax year 2026-27.

Related sections

72→112Carry forward and set-off of business losses74→111Carry forward of capital losses71B→110Carry forward of house property loss