Substitution of new section for section 74
Section 7 of the Finance Act, 1962 deals with substitution of new section for section 74. Substitution of new section for section 74 7. The Act was enacted on 22 Jun 1962.
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]
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Section 7, The Finance Act, 1962 (Act 20 of 1962).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
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Questions about Section 7
What does Section 7 of the Finance Act deal with?
Section 7 of the Finance Act is headed "Substitution of new section for section 74". Substitution of new section for section 74 7.
How do I find court cases under Section 7 of the Finance Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 1962 7, section 7 Finance Act 1962, section 7 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 7 of the Finance Act, and has it changed?
Its own text turns on Income-tax Act 74 (Losses under the head "Capital gains"), so none of them can safely be read on its own.
When was Section 7 of the Finance Act enacted?
Section 7 of the Finance Act, cited as Finance Act 1962 7, was enacted on 22 Jun 1962 as Act 20 of 1962. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 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. This page is not a substitute for legal advice.