Exceptions to the rule that losses can be carried forward for eight assessment years

Carryforward exceptions for business losses allow indefinite or extended carryforward in specified discontinuance, succession, and amalgamation cases.

Exceptions permit indefinite or extended carryforward of business losses in specific cases: losses of specified businesses under Section 35AD carry forward without time limit; losses of a year in which a business is discontinued may be set off against income treated as arising from that discontinued business; if a discontinued business is re established within the prescribed period, losses (including brought forward losses) are carried to the year of re establishment for set off and any balance carried for seven further assessment years. Amalgamation and succession events, and unabsorbed depreciation, also permit carryforward beyond eight years.