Section 74A → Section 97
Losses from certain specified sources falling under Income from other sources
Quick Answer
Section 74A of the Income Tax Act, 1961 (Losses from certain specified sources falling under Income from other sources) corresponds to Section 97 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 74A
Provision Summary
Loss from the activity of owning and maintaining racehorses can only be set off against income from the same activity. Carry forward for 4 years.
Sec 97
Provision Summary
Retained. Restricts niche losses from offsetting regular income.
Key Changes & Highlights
- No structural change.
Frequently Asked Questions
What does Section 74A of the Income Tax Act 1961 deal with?
Section 74A (Losses from certain specified sources falling under Income from other sources) Loss from the activity of owning and maintaining racehorses can only be set off against income from the same activity. Carry forward for 4 years.
What is the new section number for Section 74A under the Direct Tax Code 2025?
Section 74A of the ITA 1961 maps to Section 97 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 74A under the new tax code?
Section 74A is marked as "Retained" with status "Active". Impact: Low - Niche provision for racehorse owners.
What are the key changes to Section 74A under DTC 2025?
No structural change.
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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