§ 120
Chapter VII — Set Off, Or Carry Forward And Set Off Of Losses
Losses Not Set Off Against Undisclosed Income
Income-tax Act, 2025
Any loss carried forward or unabsorbed depreciation cannot be used to reduce undisclosed income that is added to total income because of a search, requisition or survey under the specified sections. This rule applies regardless of other provisions in the Act.
- Undisclosed income is defined in section 301.
- Applies to income identified through searches (s.247), requisitions (s.248) or surveys (s.253, except surveys under s.253(4)).
📜 Official text of the section +
120. (1) Irrespective of anything contained in any other provision of this Act,
any loss, whether brought forward or otherwise or unabsorbed depreciation,
shall not be allowed to be set off against any undisclosed income which is included
in the total income of any tax year, consequent to a search conducted under section
247 or a requisition under section 248 or a survey conducted under section 253, not
being a survey under section 253(4).
(2) For the purposes of this section, the expression “undisclosed income” for any
tax year shall have the meaning as referred to in section 301.
Submission of return for losses.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.
Related sections
§ 108SET OFF, OR CARRY FORWARD AND SET OFF OF LOSSES Set off of losses under same head of income§ 109Set off of losses under any other head of income§ 110Carry forward and set off of loss from house property§ 111Carry forward and set off of loss from Capital gains§ 112Carry forward and set off of business loss§ 113Set Off and Carry Forward of Speculation Business Losses