2 min
05 April 2025
Are you navigating the maze of tax laws in India? Section 73 of the Income Tax Act might be a crucial piece of the puzzle for your financial planning. This section has significant implications for investors, especially those dealing with share market transactions.
If you have faced losses in your stock market investments, Section 73 could help you manage these setbacks effectively. Understanding how these provisions work might save you substantial tax amounts in the long run.
This article will explain Section 73 in simple terms, helping you grasp its purpose and application in your tax planning strategy. You might already be eligible for certain tax benefits under this section. Check your eligibility by entering your mobile number and OTP to learn more about optimising your tax savings.
What is Section 73 of the Income Tax Act?
Section 73 deals specifically with losses from speculation business. The Income Tax Act considers share trading as a speculative business in certain circumstances. This section controls how you can set off and carry forward these specific losses.
When you buy and sell shares as a regular business activity, the income tax department views it differently from casual investments. Section 73 creates clear rules for handling losses from such activities.
Are you unsure if Section 73 applies to your investments? Check your loan offers and tax planning options by entering your mobile number and verifying with an OTP. Our experts can guide you through the application of Section 73 to your specific situation.
Purpose of Section 73 of the Income Tax Act
The main aim of Section 73 is to prevent tax avoidance through artificial losses. It ensures that taxpayers cannot use speculative losses to reduce their tax burden from other income sources unfairly.
The tax department created this section to maintain a balance. It allows genuine business losses to be carried forward but prevents misuse of the provision. This helps maintain the integrity of the tax system while giving relief to honest taxpayers.
Section 73 of the Income Tax Act explained
Section 73 states that losses from speculation business can only be set off against profits from other speculation business. You cannot use these losses to reduce your salary income or business profits from non-speculative activities.
For example, if you lost Rs. 50,000 in intra-day trading (considered speculative), you cannot use this loss to reduce your taxable salary. However, you can use it against profits from other speculative transactions. Check your eligibility for tax-saving investments that complement your Section 73 planning by entering your mobile number and OTP.
Carry forward of losses
Section 73 allows you to carry forward speculation losses for up to four assessment years. This means if you cannot set off your losses in the current year, you get four more chances to do so against future speculation profits.
This carry-forward benefit gives taxpayers breathing room to recover from market downturns. However, you must file your income tax return before the due date to claim this benefit. Missing the deadline means losing your right to carry forward these losses.
Set-off of losses
The set-off mechanism under Section 73 works in a specific order. First, you must set off speculation losses against speculation profits of the same year. If any loss remains, you can carry it forward to the next year.
This systematic approach ensures proper tracking of losses and their set-off. Remember that these losses can only reduce future speculation profits, not any other income type.
While planning your tax strategy, also consider your housing needs. Just as Section 73 helps manage investment losses, a well-planned home loan can provide tax benefits under other sections.
How to apply for Bajaj Housing Finance Home Loan
Applying for a Bajaj Housing Finance Home Loan is straightforward and user-friendly:
The doorstep document pickup service saves you multiple branch visits, making the process hassle-free. A representative will guide you through the remaining steps after your application submission.
Eligibility criteria to get home loan from Bajaj Finserv
To qualify for a Bajaj Housing Finance Home Loan, you need to meet these basic requirements:
You may already qualify for a home loan with competitive interest rates. Check your loan offers by entering your mobile number and OTP to discover your personalised options today.
Making the Most of Section 73 and home loan benefits
Understanding Section 73 helps you manage investment losses effectively. Similarly, a well-planned home loan offers multiple tax advantages under different sections of the Income Tax Act.
Bajaj Housing Finance Home Loans provide numerous benefits that complement your tax planning:
Make a smart move by combining your understanding of Section 73 with the advantages of a Bajaj Housing Finance Home Loan. This integrated approach can optimise both your investment strategy and housing plans.
*Terms and conditions apply
Check also:
If you have faced losses in your stock market investments, Section 73 could help you manage these setbacks effectively. Understanding how these provisions work might save you substantial tax amounts in the long run.
This article will explain Section 73 in simple terms, helping you grasp its purpose and application in your tax planning strategy. You might already be eligible for certain tax benefits under this section. Check your eligibility by entering your mobile number and OTP to learn more about optimising your tax savings.
What is Section 73 of the Income Tax Act?
Section 73 deals specifically with losses from speculation business. The Income Tax Act considers share trading as a speculative business in certain circumstances. This section controls how you can set off and carry forward these specific losses.
When you buy and sell shares as a regular business activity, the income tax department views it differently from casual investments. Section 73 creates clear rules for handling losses from such activities.
Are you unsure if Section 73 applies to your investments? Check your loan offers and tax planning options by entering your mobile number and verifying with an OTP. Our experts can guide you through the application of Section 73 to your specific situation.
Purpose of Section 73 of the Income Tax Act
The main aim of Section 73 is to prevent tax avoidance through artificial losses. It ensures that taxpayers cannot use speculative losses to reduce their tax burden from other income sources unfairly.
The tax department created this section to maintain a balance. It allows genuine business losses to be carried forward but prevents misuse of the provision. This helps maintain the integrity of the tax system while giving relief to honest taxpayers.
Section 73 of the Income Tax Act explained
Section 73 states that losses from speculation business can only be set off against profits from other speculation business. You cannot use these losses to reduce your salary income or business profits from non-speculative activities.
For example, if you lost Rs. 50,000 in intra-day trading (considered speculative), you cannot use this loss to reduce your taxable salary. However, you can use it against profits from other speculative transactions. Check your eligibility for tax-saving investments that complement your Section 73 planning by entering your mobile number and OTP.
Carry forward of losses
Section 73 allows you to carry forward speculation losses for up to four assessment years. This means if you cannot set off your losses in the current year, you get four more chances to do so against future speculation profits.
This carry-forward benefit gives taxpayers breathing room to recover from market downturns. However, you must file your income tax return before the due date to claim this benefit. Missing the deadline means losing your right to carry forward these losses.
Set-off of losses
The set-off mechanism under Section 73 works in a specific order. First, you must set off speculation losses against speculation profits of the same year. If any loss remains, you can carry it forward to the next year.
This systematic approach ensures proper tracking of losses and their set-off. Remember that these losses can only reduce future speculation profits, not any other income type.
While planning your tax strategy, also consider your housing needs. Just as Section 73 helps manage investment losses, a well-planned home loan can provide tax benefits under other sections.
How to apply for Bajaj Housing Finance Home Loan
Applying for a Bajaj Housing Finance Home Loan is straightforward and user-friendly:
- Visit the Bajaj Finserv website or use their mobile app
- Click on the 'APPLY' button and enter your basic details
- Select your preferred loan type (fresh loan, balance transfer, or top-up)
- Verify your mobile number via OTP
- Provide additional details like income and loan amount needed
- Submit your PAN and date of birth information
- Click 'SUBMIT' to complete your application
The doorstep document pickup service saves you multiple branch visits, making the process hassle-free. A representative will guide you through the remaining steps after your application submission.
Eligibility criteria to get home loan from Bajaj Finserv
To qualify for a Bajaj Housing Finance Home Loan, you need to meet these basic requirements:
- Indian citizenship and residence in India
- Age between 23-67 years for salaried applicants (up to 70 years for self-employed)
- CIBIL Score of 725 or higher
- Employment as salaried, professional, or self-employed individual
You may already qualify for a home loan with competitive interest rates. Check your loan offers by entering your mobile number and OTP to discover your personalised options today.
Making the Most of Section 73 and home loan benefits
Understanding Section 73 helps you manage investment losses effectively. Similarly, a well-planned home loan offers multiple tax advantages under different sections of the Income Tax Act.
Bajaj Housing Finance Home Loans provide numerous benefits that complement your tax planning:
- Interest rates starting at just 8.25%* p.a mean lower EMIs of Rs. 741/lakh*
- Loan approval within 48 hours* saves valuable time
- Flexible tenure of up to 32 years makes repayment comfortable
- No foreclosure fees for floating rate loans gives financial flexibility
- 5000+ approved projects for quick loan processing
- Balance transfer facility with top-up loans up to Rs. 1 crore for additional financial needs
Make a smart move by combining your understanding of Section 73 with the advantages of a Bajaj Housing Finance Home Loan. This integrated approach can optimise both your investment strategy and housing plans.
*Terms and conditions apply
Check also:
| Income Tax Login | Income Tax E Filing |
| Income Tax Slab | Tax Concept |
| Calculate Tax | New Tax Regime Income Tax Slabs |
| New Tax Regime Calculator | New Tax Slab |
| Short Term Capital Gain Tax | Long Term Capital Gain Tax |
