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 Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 74
In the 1961 statute, Section 74 deals with 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.
The new code maps this to Section 96: the provision is retained and renumbered as Section 96 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Critical structural safeguard for equity and real estate investors.
On the ground, changes to Section 74 carry a Very High impact. Governs stock market and real estate loss taxation.
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 of the Income Tax Act, 1961 covers 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.
Where does Section 74 of the ITA 1961 go under the Income-tax Act, 2025?
Section 74 of the Income Tax Act, 1961 maps to Section 96 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Critical structural safeguard for equity and real estate investors.
Why does the change to Section 74 matter for taxpayers?
The transition impact for Section 74 is rated Very High. Governs stock market and real estate loss taxation.
What are the key changes to Section 74 under the Income-tax Act, 2025?
Brokerage AIS data automatically calculates and suggests valid carry-forward figures on the portal. These points are specific to Section 74 (Loss under the head Capital Gains).
Disclaimer: This mapping of Section 74 (Loss under the head Capital Gains) to Section 96 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 74 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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