Loss Carry Forward

By Simplify Money Team

Definition

Ability to carry forward business losses or capital losses to future financial years to set off against future profits or gains.

In Context

F&O traders and startup founders commonly use this. Business losses carry forward for 8 years (set off only against business income). Capital losses carry forward for 8 years (set off only against capital gains). Must file ITR on time in the year of loss, even if there is no income, to be eligible to carry it forward.

Related Terms

business-loss tax-audit fo-tax itr-3

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⚠️ Disclaimer: This glossary is for educational purposes. Simplify Money provides analytical insights and guidance. We have applied for SEBI RIA registration.

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