Find
ITR-1 does not allow brought forward or carried forward losses. You need ITR-2 or ITR-3 to set off or carry forward losses.
ITR
Carried forward losses rule out ITR-1
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Provisions
Rule 12, Income-tax Rules 1962 (now Rule 164, Income-tax Rules 2026); Sec 74, Income-tax Act 1961 (now Sec 111, Income-tax Act 2025)
Analysis
Even if your current income is only salary, a past capital loss needs Schedule CFL in ITR-2 to keep it alive. If you file ITR-1, the loss may lapse from the record. Losses can be carried forward only if each loss year return was filed on time.
Close
- Check last year's Schedule CFL.
- Use ITR-2 if losses exist.
- Fill Schedule CFL.
- File on time.
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