Schedule CFL – Details of Losses to be carried forward to future years AY 2026-27

Schedule CFL – Details of Losses to be carried forward to future years AY 2026-27

‘Schedule CFL’ (Carry Forward of Losses) in the Income Tax Return (ITR) captures details of losses that remain unadjusted in the current assessment year and are being carried forward to subsequent years.

This schedule applies to taxpayers who have incurred losses under different heads of income—such as income from house property, business or profession (including speculative business), capital gains (short-term and long-term), or other sources—and have not been able to set them off entirely against income in the current year. These losses are reported so they can be claimed and adjusted in future assessment years, within the time limits and restrictions prescribed under the Income Tax Act.

Reporting these losses accurately in Schedule CFL ensures that taxpayers retain the right to claim them in the future and prevents revenue loss due to procedural lapses.

Section 71B to Section 80 of the Income-tax Act, 1961.

The losses which could not be set-off in the same year due to inadequacy of eligible profits are allowed to be carried forward to the next assessment year for adjustment against the eligible profits of that year. When losses are carried forward to subsequent years, they can be adjusted only against income taxable under the same head of income under which losses were incurred in the year of set-off.

This schedule applies to ITR-2, ITR-3, ITR-5 & ITR-6