Loss from the activity of owning and maintaining race-horses. - Section 74A - Income Tax - Ready Reckoner - Income Tax

Loss from the activity of owning and maintaining race-horses. - Section 74A Loss from the activity of owning and maintaining race horses shall be SET OFF against the income from the activity of owning and maintaining race horses. The loss to the extent not SET OFF shall be carried forward to the next assessment year and SET OFF against the income from the activity of owning and maintaining race horses. The loss can be carry forward for 4 AYs. Filing of return before the due date prescribed u/s 139(1) is necessary to carry forward the loss. 'Horse race' means a horse race upon which wagering or betting may be lawfully made. The amount of loss would be calculated as below: if assessee has no income by way of stake income (i.e. prize money earned), then the whole of revenue expenditure laid out or expended wholly and exclusively for maintaining race horses. if assessee has stake income then the whole of revenue expenditure laid out or expended wholly and exclusively for maintaining race horses minus stake income. Note:- Section 74A only deals with set off and carry forward of losses from the activity of owning and maintaining race horses. Losses arising from the activity of owning and maintaining other animals will be dealt under section 72 .