B/f Losses in Old/New Tax Regime

Manoj Punjabi (Accountant) (223 Points)

21 May 2024  

New / Old Tax Regime – B/F trading losses.

I have b/f losses of about 4 lacs from option trading, plus current year option trading losses of about 1 lac.

My salary income is about 7.3 lacs.

Query is:

If I opt new regime I will have to forget b/f losses plus I cannot c/f current losses, over all I will have to forget about 5 lacs of losses which I cannot set off in future against future profits in option trading if any.

If I opt for old regime I can c/f losses & can set off in future. But my current Tax will be around 20,000 after some deductions which are allowed in old regime.

What shall I do?

In new regime tax is zero, but future Tax setoff of about 20% on 5 lacs losses, i.e. about 1 lac tax benefit in future – but future profits are uncertain, may happen, may not happen.

In old regime I have to pay 20000 now from pocket.

Please Guide, go for Zero TAX New regime, or pay 20000 in Old Regime.