Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

B/F Losses accepted in ITR3 New Regime, is it correct.

847 views

Save Share

Join Us Follow Us Add as Source

Manoj Punjabi

Accountant

269 Points Posted on 14 July 2024

Dear friends

I am filing ITR3, Under new regime I came to know that B/F business losses (options trading losses) are not allowed, but in Schedule BFLA there is option to add losses of previous years manually. These columns were not autofilled. I filled these manually.

I have b/f loss of 1-lac of AY21-22 & 3-Lacs for AY22-23, I filled up those figures in year wise b/f losses, it was accepted in ITR 3, no error.

These b/f losses are not utilised as set-off in current year, as there is no additional income for set-ff. just these b/f losses are c/f to future years.

Json generated without any error, with figures of previous years losses c/f to future.

Used 1.1.3 latest IT utility version.

Should I upload it, is it okay that system accepted b/f business losses in new regime.

Thanks in advance.

Replies (3)

Quick Summary

This discussion explores whether brought forward (B/F) business losses, specifically from options trading, can be claimed in ITR3 under the new tax regime. While initially thought to be disallowed, it was confirmed that B/F business losses are generally permissible to carry forward, with the exception of those related to specific withdrawn deductions under Section 115BAC. The user successfully filed their ITR3 manually entering these losses, and the system accepted them for carry forward without error.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 Points Posted on 14 July 2024

Yes, it is correct. Only certain deductions/exemptions are withdrawn in clause (i) of sub-section (2) of section 115BAC. Only the b/f losses relevant to these expenses are not allowed to b/f and set off with current year losses. Otherwise, there is no bar to set off business losses in new regime., or even c/f. So, file return with carry forward of the business losses.