Section 74 → Section 96
Loss under the head Capital Gains
Quick Answer
Section 74 of the Income Tax Act, 1961 (Loss under the head Capital Gains) corresponds to Section 96 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 74
Provision Summary
Short-term capital loss can be set off against both STCG and LTCG. Long-term capital loss can only be set off against LTCG. Carry forward for 8 years.
Sec 96
Provision Summary
Retained. Critical structural safeguard for equity and real estate investors.
Key Changes & Highlights
- Brokerage AIS data automatically calculates and suggests valid carry-forward figures on the portal.
Related Sections
Frequently Asked Questions
What does Section 74 of the Income Tax Act 1961 deal with?
Section 74 (Loss under the head Capital Gains) Short-term capital loss can be set off against both STCG and LTCG. Long-term capital loss can only be set off against LTCG. Carry forward for 8 years.
What is the new section number for Section 74 under the Direct Tax Code 2025?
Section 74 of the ITA 1961 maps to Section 96 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 74 under the new tax code?
Section 74 is marked as "Retained" with status "Active". Impact: Very High - Governs stock market and real estate loss taxation.
What are the key changes to Section 74 under DTC 2025?
Brokerage AIS data automatically calculates and suggests valid carry-forward figures on the portal.
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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