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Loss carryforward and set off under new tax regime?

curiousv (Mr.) (82 Points)

14 July 2024

I have been filing under old tax regime until now -

Somewhere on internet I read that if you have migrate to new tax regime

all tax losses you have carried forward until now (under old tax regime) can not be set off against profits (under new tax regime) bascially all losses I have to foget - it can not be set off or carried forward

Please advise if this true?

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31 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 14 July 2024

No, partly true. Depends upon nature of loss. More than half of them can be set off and can be carried forward.

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curiousv (Mr.) (82 Points)
Replied 14 July 2024

So for example if I had a loss in long term capital - can I set off against future long term capital gain or any other income ? what about short term capital loss - can it be setoff against future gains? also what about FNO trading loss and intraday (speculative trading) trading loss? can it be carried forward and set off ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 14 July 2024

Yes, after setting off against any permissible income of other heads. For these four losses there is no difference in old and new regime.

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curiousv (Mr.) (82 Points)
Replied 15 July 2024

Thanks for your responses. If I choose presumptive income this year (till now was filing no account case) - and I have intraday trading loss (speculative loss) how do I report loss because under presumptive income - there is no option of adding speculative loss ...I believe I have to add the loss under no account case because for intraday trading turnover is less than 25 lac and loss of intraday trading is about 55,000 Rs. _however total income including stgc and interest income is above 7 lac

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 15 July 2024

How can you declare loss in presumptive assessment? Not allowed. You have to declare minimum 6% profit on your turnover, u/s. 44AD IT act.

curiousv (Mr.) (82 Points)
Replied 15 July 2024

No I meant to ask how do I report loss of intraday trading if I declaring presumptive income? Last year I chose no account case so I could report both fno trading income and intraday loss. But this year I have more turnover and profit for FNO so I can choose 'no account case' That is why asking how do report intraday loss (under which heading) so I can carry forward?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 16 July 2024

To claim loss you have to declare the business under Schedule BS & P&L in details, i.e., as per books maintained.

curiousv (Mr.) (82 Points)
Replied 16 July 2024

But in real I have not maintained books because all my business is trading income. I am going to choose presumptive income because my turnover and income fits the criteria - so in presumptive income I have gains in FNO trading and loss in intraday(speculative) - so can I deduct this speculative loss from non speculative gains (FNO)?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 16 July 2024

No. Speculative business loss cannot be set off with no-speculative business profit. It can be carried forward till next four years to set off against any speculative business income.

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curiousv (Mr.) (82 Points)
Replied 16 July 2024

Yes but my question is ...how do I report intraday trading(speculative loss) - I have not maintained any books - and turnover is more than 25 lac for FNO trading so it crossed the limit of NO ACCOUNT CASE

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 17 July 2024

Intraday Trading is to be declare separately in Tab 12a & 12b of Schedule Trading.

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curiousv (Mr.) (82 Points)
Replied 17 July 2024

Thanks ..this was really helpful.
I think now I have last question...
I am choosing presumptive income for FNO trading that was all done online/digitally - in the net profit calculation - can I deduct related expenses like computer +electric/internet and other bills + one employee salary (paid in cash as he is a relative - he is not really a employee but did pay him for his help as I myself is senior citizen and not doing the computer trading myself)

Also, I can see tax dept has details how much tds deducted or interest paid but how do I find what information tax dept have for my FNO trading Turnover?