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Carry forward losses under new tax regime

Himanshu Agarwal (Proprietor) (186 Points)

20 October 2021

Dear All,

If Mr X is having a carry forward of Losses from F and O trading ,speculative losses in PY.

This year there is no trading and only salary income:

1 .Will he need to fills details in Books of Accounts maintained or not maintained(ITR3)

2.Further if Opt for NEW TAX REGIME, will the PY losses would be lapsed or it would be allowed to be carry forward in future years.

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8 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 20 October 2021

In new tax regime carry forward is not allowed

Sivaramaraju G (Learner) (2398 Points)
Replied 21 October 2021

1. Books will be maintained only if there is business/trading. hence in your case there is no business has done so in your case no need to fill.

2. There is no change in carry forward of losses under new tax regime. it is same as old one.
you can carry forward.

Sivaramaraju G (Learner) (2398 Points)
Replied 21 October 2021

Sorry for the wrong answer. I was wrong in answering the second question.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 02 November 2021

As carry forward is not allowed

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 02 November 2021

As carry forward is not allowed

SURANA (PROPRIETOR) (515 Points)
Replied 27 June 2022

Well dont know why my Tax Software (Spectrum) is allowing set off of my Carried Forward Losses of Short Term Loss on Sale of Equity Shares for FY 17-2018 and 18-19 and 19-20 in my FY 2021-2022, even thought i had opted for New Regime for FY 20-21 (professional income) and continue to opt for new regime in FY 21-22

B Durga Prasad (Student) (175 Points)
Replied 21 June 2023

1. If Mr. X has no trading activity in the current year and only has salary income, he will not be required to fill in the details in the Books of Accounts in the ITR-3 form. The section related to the Books of Accounts will not be applicable in this case.

2. If Mr. X chooses to opt for the new tax regime, the carried forward losses from previous years, including losses from F&O trading and speculative losses, will not be allowed to be set off against the current year's salary income. Under the new tax regime, there is no provision for carrying forward and setting off such losses. The losses from previous years will effectively lapse and cannot be carried forward for future years' set off.

To learn more about Carry Forward click here
For more detailed information, visit Swipe Blog.