Report No. 12

75. Losses under the head "Capital gains".-

Where in the previous year relevant for any assessment year the assessee sustains a loss under the head "Capital gains", the assessee shall, subject to the other provisions of this Chapter, be entitled to have the amount of such loss set off against his other income assessable for that assessment year under the head "Capital gains".

[Section 24(2A)]

(2) Where in respect of any assessment year the net result of the computation under the head "Capital gains" is a loss to the assessee, such loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year and set off against capital gains assessable for that assessment year, and if it cannot be so set off, the amount thereof not so set off shall be carried forward to the following assessment year and so on..

Provided that where the loss computed in respect of any assessee, not being a company, for any assessment year does not exceed five thousand rupees, it shall not be carried forward under this sub-section.

[Section 24(2B), part]

(3) No loss shall be carried forward under sub-section (2) for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed.

[Section 24(2B), part]