Section 71 → Section 91
Set off of loss from one head against income from another
Quick Answer
Section 71 of the Income Tax Act, 1961 (Set off of loss from one head against income from another) corresponds to Section 91 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 71
The starting point is Section 71 of the Income Tax Act, 1961 — set off of loss from one head against income from another. Allows inter-head set off. E.g., House Property loss against Salary income (restricted to Rs. 2 Lakhs).
The new code maps this to Section 91: the provision is retained and renumbered as Section 91 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Capital losses remain ineligible to be set off against any other head of income.
On the ground, changes to Section 71 carry a Very High impact. The main mechanism for reducing overall tax liability legally.
Sec 71
Provision Summary
Allows inter-head set off. E.g., House Property loss against Salary income (restricted to Rs. 2 Lakhs).
Sec 91
Provision Summary
Retained. Capital losses remain ineligible to be set off against any other head of income.
Key Changes & Highlights
- Inter-head set-off logic entirely automated in the filing portal to prevent invalid claims.
Related Sections
Frequently Asked Questions
What does Section 71 of the Income Tax Act 1961 deal with?
Section 71 of the Income Tax Act, 1961 covers set off of loss from one head against income from another. Allows inter-head set off. E.g., House Property loss against Salary income (restricted to Rs. 2 Lakhs).
Where does Section 71 of the ITA 1961 go under the Income-tax Act, 2025?
Section 71 of the Income Tax Act, 1961 maps to Section 91 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Capital losses remain ineligible to be set off against any other head of income.
Why does the change to Section 71 matter for taxpayers?
The transition impact for Section 71 is rated Very High. The main mechanism for reducing overall tax liability legally.
What are the key changes to Section 71 under the Income-tax Act, 2025?
Inter-head set-off logic entirely automated in the filing portal to prevent invalid claims. These points are specific to Section 71 (Set off of loss from one head against income from another).
Disclaimer: This mapping of Section 71 (Set off of loss from one head against income from another) to Section 91 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 71 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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