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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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 (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).
What is the new section number for Section 71 under the Direct Tax Code 2025?
Section 71 of the ITA 1961 maps to Section 91 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 71 under the new tax code?
Section 71 is marked as "Retained" with status "Active". Impact: Very High - The main mechanism for reducing overall tax liability legally.
What are the key changes to Section 71 under DTC 2025?
Inter-head set-off logic entirely automated in the filing portal to prevent invalid claims.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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