{"act":{"id":"finance-act-1962","short_title":"The Finance Act, 1962","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 1962-1963.","act_number":"20","act_year":1962,"enact_date":"1962-06-22","enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":16,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-1962/"},"unit":"section","section":{"number":"7","heading":"Substitution of new section for section 74","text":"Substitution of new section for section 74 7. For section 74 of the Income-tax Act, the following section shall be substituted, namely: - Losses under the ‘head \"Capital gains\" \"74. (1) (a) Where in respect of any assessment year, the net result of the computation under the head ‘Capital gains‘ is a loss, such loss shall, subject to the other provisions of this Chapter, be dealt with as follows: - (i) such portion of the net loss as relates to short-term capital assets shall be carried forward to the following assessment year and set off against the capital gains, if any, relating to short-term capital assets 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; (ii) such portion of the net loss as relates to capital assets other than short-term capital assets shall be carried forward to the following assessment year and set off against the capital gains, if any, relating to capital assets other than short-term capital assets 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, in the case of any assessee not being a company, the net loss computed in respect of such capital assets for any assessment year does not exceed five thousand rupees, it shall not be carried forward under this section. (b) Notwithstanding anything contained in the Indian Income-tax Act, 1922, any loss computed under the head ‘Capital gains‘ in respect of the assessment year commencing on the 1st day of April, 1961 (11 of 1922), or any earlier assessment year which is carried forward in accordance with the provisions of sub-section (2B) of section 24 of that Act, shall be dealt with in the assessment year commencing on the 1st day of April, 1962, or any subsequent assessment year as follows: - (i) in so far as it relates to short-term capital assets, it shall be carried forward and set off in accordance with the provisions of sub-clause (i) of clause (a) and sub-section (2); and (ii) in so far as it relates to capital assets other than . short-term capital assets, it shall be carried forward and set off in accordance with the provisions of sub-clause (ii) of clause (a) and sub-section (2). (2) (a) No loss referred to in sub-clause (i) of clause (a) of sub-section (1) or sub-clause (i) or sub-clause (ii) of clause (b) of that sub-section shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed under this Act or, as the case may be, the Indian Income-tax Act, 1922 (11 of 1922). (b) No loss referred to in sub-clause (ii) of clause (a) of sub-section (1) shall be carried forward under this section for more than four assessment years immediately succeeding the assessment year for which the loss was first Computed under this Act.\". [Finance (No. 2) Act, 1962] © Copyright. Taxmann Publications Pvt. Ltd.","html":"<p><strong>Substitution of new section for section 74</strong></p><p>7. For section 74 of the Income-tax Act, the following section shall be substituted, namely: -</p><p><strong>Losses under the ‘head \"Capital gains\"</strong></p><p>\"74. (<i>1</i>) (<i>a</i>) Where in respect of any assessment year, the net result of the computation under the head ‘Capital gains‘ is a loss, such loss shall, subject to the other provisions of this Chapter, be dealt with as follows: -</p><p>(<i>i</i>) such portion of the net loss as relates to short-term capital assets shall be carried forward to the following assessment year and set off against the capital gains, if any, relating to short-term capital assets 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;</p><p>(<i>ii</i>) such portion of the net loss as relates to capital assets other than short-term capital assets shall be carried forward to the following assessment year and set off against the capital gains, if any, relating to capital assets other than short-term capital assets 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:</p><p>Provided that where, in the case of any assessee not being a company, the net loss computed in respect of such capital assets for any assessment year does not exceed five thousand rupees, it shall not be carried forward under this section.</p><p><span class=\"num\">(b)</span> Notwithstanding anything contained in the Indian Income-tax Act, 1922, any loss computed under the head ‘Capital gains‘ in respect of the assessment year commencing on the 1st day of April, 1961 (11 of 1922), or any earlier assessment year which is carried forward in accordance with the provisions of sub-section (<i>2B</i>) of section 24 of that Act, shall be dealt with in the assessment year commencing on the 1st day of April, 1962, or any subsequent assessment year as follows: -</p><p>(<i>i</i>) in so far as it relates to short-term capital assets, it shall be carried forward and set off in accordance with the provisions of sub-clause (<i>i</i>) of clause (<i>a</i>) and sub-section (<i>2</i>); and</p><p>(<i>ii</i>) in so far as it relates to capital assets other than . short-term capital assets, it shall be carried forward and set off in accordance with the provisions of sub-clause (<i>ii</i>) of clause (<i>a</i>) and sub-section (<i>2</i>)<i>.</i></p><p><span class=\"num\">(2)</span> (<i>a</i>) No loss referred to in sub-clause (<i>i</i>) of clause (<i>a</i>) of sub-section (<i>1</i>) or sub-clause (<i>i</i>) or sub-clause (<i>ii</i>) of clause (<i>b</i>) of that sub-section shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed under this Act or, as the case may be, the Indian Income-tax Act, 1922 (11 of 1922).</p><p>(<i>b</i>) No loss referred to in sub-clause (<i>ii</i>) of clause (<i>a</i>) of sub-section (<i>1</i>) shall be carried forward under this section for more than four assessment years immediately succeeding the assessment year for which the loss was first Computed under this Act.\".</p><p>[Finance (No. 2) Act, 1962]</p><p>© Copyright. Taxmann Publications Pvt. Ltd.</p>","words":532,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-1962/section/7/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}