New Delhi, Oct. 24 -- The new Income-tax Act, 2025, came into effect on April 1, 2026. If you have carried forward losses from previous financial years to reduce your tax liability in the future, you may wonder whether these losses remain valid under the new tax framework.

The Central Board of Direct Taxes (CBDT), in its FAQs on the interplay and transition from the Income-tax Act, 1961, to the Income-tax Act, 2025, has clarified that the fundamental rules for setting off and carrying forward losses remain unchanged. Here is what taxpayers need to know.

Yes. Losses carried forward under the Income-tax Act, 1961, can continue to be carried forward and set off under the Income-tax Act, 2025. The new law does not restart the time limit for...