Set off of loss from one head against income from another

Subject to the provisions of this Chapter, the assessee shall be entitled to have the quantity of such loss set off against his revenue, if any, assessable for that evaluation year under any other head when the net result of the computation under any gross total income, other than "Capital gains," is a loss and the taxpayer has no income under the head "Capital gains."

If for any evaluation year, the net result of the calculations under any head of income other than "Capital gains" is a loss and the assessee has income that is deductible under the terms of this Chapter, then such loss may be offset against his income, if any, that is deductible for that evaluation year under any gross total income, along with the head "Capital gains" (whether relating to short-term capital assets or any other capital assets).

You can tax deductions under 80g certficate.

If, for any evaluation year, the net result of the calculation under the head "Profits and gains of business or profession" is a loss and the taxpayer has income that is taxable under the head "Salaries," the taxpayer shall not be eligible to receive such loss set off against such income, despite anything stated in the first sub-section or second sub-section.

If the net outcome of the calculation under the head "Capital gains" for any assessment year is a loss and the taxpayer has income that is taxable under any other gross total income, the assessee is not eligible to offset the loss against income from the other head.

If the net result of the calculation under the heading "Income from house property" is a loss, the loss must first be offset under the aforementioned sub-sections, and then the loss specified in section 71A must be offset in the effective evaluation year in accordance with the requirements of that section, for the assessment years beginning on the first day of April 1995 and the first day of April 1996.

Get your NGO registered under section 12a of income tax act.