Neutral impactEconomy
Rules explained: Old vs New Income Tax Act 2025 - Can you set off or carry forward losses from previous years? Details
Mint 1 hr ago·24 Oct 2026, 10:43 am
The new Income-tax Act, 2025, introduces changes to how taxpayers can use losses from previous years. Under the new rules, losses incurred under the old regime can no longer be set off against income earned under the new regime. However, losses from the new regime can still be carried forward to future years to offset future income. This distinction is crucial for investors and salaried individuals to understand their tax planning strategies.
This shift matters because it impacts the net tax liability for individuals who have been operating under the old regime. Investors need to carefully assess which regime offers better benefits for their specific financial situation. The rules also clarify that losses cannot be carried forward indefinitely and must be utilized within a set time frame.
Moving forward, taxpayers should review their previous tax filings to identify any eligible losses. It is advisable to consult a tax professional to ensure compliance with the new provisions and to optimize tax savings. Keeping track of these changes will help in making informed financial decisions for the upcoming fiscal year.
Excerpt from Mint
The Income-tax Act, 2025, came into effect on April 1, 2026, raising questions about losses carried forward under the old tax regime. CBDT FAQs explain the transition rules, including what taxpayers should check before adjusting past losses against future income. The new Income-tax Act, 2025, came into effect on April…Read the original at Mint
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
