Rules explained: Old vs New Income Tax Act 2025 - Can you set off or carry forward losses from previous years? Details
The Income-tax Act, 2025, effective April 1, 2026, allows taxpayers to carry forward losses from the previous regime without restarting the time limit. The Central Board of Direct Taxes confirmed that the rules for setting off and carrying forward losses remain unchanged, ensuring continuity for taxpayers adjusting past losses against future income. Taxpayers should review their eligibility before making adjustments.