Schedule BFLA – Details of Income after Set off of Brought Forward Losses of earlier years AY 2026-27
Under the Income-tax Act, losses that cannot be set off in the same year due to the inadequacy of eligible profits are allowed to be carried forward to the next assessment year for adjustment against the eligible profits of that year.
‘Schedule BFLA’ (Brought Forward Loss Adjustment) in the Income Tax Return (ITR) form reports the adjustment of losses that were incurred in previous years and have been carried forward, against the current year’s income. It applies to taxpayers who have eligible losses under various heads—such as house property, business or profession (including speculative and non-speculative), capital gains (short-term and long-term), or income from other sources—and are now setting them off against current year profits, as per the Income Tax Act provisions.
This schedule applies to ITR-2, ITR-3, ITR-5 & ITR-6