The newly enacted Income-tax Act, 2025 (ITA 2025), is largely intended to simplify and reorganise tax provisions rather than materially alter the taxation framework for capital gains and losses. Accordingly, investors carrying forward losses from shares and mutual funds are not expected to lose the benefit of such losses merely due to the transition from the Income-tax Act, 1961 (ITA 1961). Under the existing framework, which broadly continues under the new law, short-term capital losses (STCL) arising from shares and mutual funds can be set off against both short-term and long-term capital gains, while long-term capital losses (LTCL) may generally be adjusted only against long-term capital gains. Such losses can ordinarily be carried forward for up to eight assessment years, subject to timely filing of the income-tax return.