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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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 does Section 72 of the Income Tax Act 1961 deal with?
Section 72 (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.
What is the new section number for Section 72 under the Direct Tax Code 2025?
Section 72 of the ITA 1961 maps to Section 92 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 72 under the new tax code?
Section 72 is marked as "Retained" with status "Active". Impact: High - Crucial for startups and businesses with volatile profits.
What are the key changes to Section 72 under DTC 2025?
No change in the 8-year limit.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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