Section 72 → Section 92
Carry forward and set off of business losses
Quick Answer
Section 72 of the Income Tax Act, 1961 (Carry forward and set off of business losses) corresponds to Section 92 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 72
In the 1961 statute, Section 72 deals with carry forward and set off of business losses. Normal business losses can be carried forward for 8 assessment years and set off only against business income.
From 1st April 2026, the same subject sits at Section 92 of the Income-tax Act, 2025 — retained and renumbered as Section 92 of the Income-tax Act, 2025. Retained. Mandatory condition of filing the return before the due date (Section 139(1)) strictly enforced via DIN tracking.
For Section 72, the practical impact is rated High. Crucial for startups and businesses with volatile profits.
Sec 72
Provision Summary
Normal business losses can be carried forward for 8 assessment years and set off only against business income.
Sec 92
Provision Summary
Retained. Mandatory condition of filing the return before the due date (Section 139(1)) strictly enforced via DIN tracking.
Key Changes & Highlights
- No change in the 8-year limit.
Related Sections
Frequently Asked Questions
What is Section 72 of the Income Tax Act, 1961 about?
Section 72 of the Income Tax Act, 1961 covers carry forward and set off of business losses. Normal business losses can be carried forward for 8 assessment years and set off only against business income.
Which section replaces Section 72 in the Income-tax Act, 2025?
Section 72 of the Income Tax Act, 1961 maps to Section 92 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Mandatory condition of filing the return before the due date (Section 139(1)) strictly enforced via DIN tracking.
What is the impact of the change to Section 72 under the new tax code?
The transition impact for Section 72 is rated High. Crucial for startups and businesses with volatile profits.
Disclaimer: This mapping of Section 72 (Carry forward and set off of business losses) to Section 92 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 72 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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