Income-tax Act, 1961Section 72
- Business loss carried forward 8 years against business income
- Speculation loss separately (73), 4 years
- Loss return must be filed by the due date (80)
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 72
LossesSection 72 → Section 112
Carry forward and set-off of business losses
Section 72 of the old Income-tax Act, 1961 · new section 112 under the Income-tax Act, 2025
New reference Section 112 (speculation 73 → 113; return for losses 80 → 121)
Income-tax Act, 2025Section 112 (speculation 73 → 113; return for losses 80 → 121)
- Same, now section 112: 8 years against business income
- Speculation losses: section 113
- Due-date return condition: section 121
- Unabsorbed depreciation/allowances absorbed after current loss (112(3))
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered; periods unchanged.
Practice notes
- Section 112 of the 2025 Act is not the LTCG rate section (that was old 112, now 197).
Frequently asked
How long can business loss be carried forward under the new Income Tax Act 2025?
8 tax years under section 112, provided the return is filed by the due date (section 121).
What is section 72 called in the new Income-tax Act, 2025?
Section 72 of the Income-tax Act, 1961 corresponds to Section 112 (speculation 73 → 113; return for losses 80 → 121) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 72 under the new Income Tax Act?
Renumbered; periods unchanged.
Is section 72 still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 72 of the 1961 Act. Section 112 (speculation 73 → 113; return for losses 80 → 121) of the 2025 Act applies from tax year 2026-27.