Exact same thing happened with me. Stupid wording and stupid income tax dept
BTW did you consult any CA? What did they say?
Yes as I told earlier, after consulting one of the CA (as a last resort 
) and as per his suggestion i have filed as per new Regime.
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I have lost about Rs. 17,000 in taxes thanks to this saga.
Very sad to know but it’s the mistake that we have committed and unfortunately there seems to be no provision to reverse it, even before the due date. 
Hi All,
Even i have filed the 10IEA under re-entering mistakenly…
I was filing ITR3 with FNO loss & CG adjustments which was giving me Refund under old regime but now with new regime, i have to pay huge taxes…
What if i go with any other Forms, will my old Losses be carry forwarded?
Can i file ITR1 or 2 or 4 without showing net CG profit for current AY ignoring FNO losses?
Please guide here as its only 4days left…
Hi,
Exactly it is very confusing and no where in their FAQs also it is clearly mentioned. Even i too filed 10-IEA as i also had F&O losses(treated as business income)
Since 4 years I was carry forwarding all F&O losses and stayed in old regime only. last year filed 10-IEA, this also filed it.
Now When using Quicko portal for ITR submission I got error and after reaching out to them they are advising to switch to new regime only. But if i switch to new regime all my CFL from the past 4 years will go away and very less refund also.
It would be helpful if someone respond with a solution for this.
Thanks in advance.
Hi,
I don’t think that all earlier losses will be unavailable for next AY.
It is not available only if you file other than ITR3.
Even i had no choice but to proceed with Liability it generated for this AY… Instead of refund, got to pay taxes.
I do feel they complicated a bit with the flow or choice of words used in the ITR wrt to the opting out option.
The question / flow could have been:
Are you opting out or re-entering the new regime ?
If you had opted out in the previous AY, and wish to remain opted out, no further action is required.
If you wish to re-enter, please fill form 10IEA for current AY.
It could have been something like that.
Sad to hear that many have committed similar mistake 
but…
This is something unheard of ! I don’t think earlier years losses will be unavailable on change of regime.
Same issue for my friend as well. It was very confusing, and he thought 10IEA needs to be filed every year like FY23-24. Now filing 10IEA in FY24-25 again has resulted in opting in for new regime. He has various deductions and in new regime he has to pay additional tax of around 70k. Not sure what to do in this case…
exactly. this is how govt wantedly confusing us and putting all of us in new regime and making us forcefully to avoid deductions. this is very strange. I dont see the use of new regime at all. And we are earning and paying taxes, but who are they to force us to stick to a single regime in the entire life.
Hi Vipulk, will the CFl be carry forwarded as is in new regime also? And also oyu mentioned in your previous replies that if we skip mentioning 10-IEA ack number in the ITR return the e-verify step is failing. please give some context on that. that would be helpful for us. and there only 3 days let to file itr. thanks in advance.
The 2nd image explicitly states what you have written.
It also says the first time you exercised option to opt out.
Most forms / rules / laws will be written in Legal language or have that kind of tone.
One needs to read carefully and pay attention instead of hurrying through.
I encountered the same confusion regarding the terms ‘Opt Out’ and ‘Re-Entering’ while filing my ITR.
My specific issue is that I have always used the old tax regime and never opted for the new one. Therefore, the option to ‘Re-Enter’ the old regime seems illogical and misleading in my case. The system accepted my 10-IEA without any warning, which is concerning.
My income consists of Salary, 44AD, and Capital Gains. Under the new regime, I am able to to claim significant deductions for my home loan interest and insurance premiums. This has resulted in an unexpected tax liability on my Short-Term Capital Gains.
Words used in that question is unclear for self-filers. It should explicitly state which regime one is ‘opting out of’ and which one they are ‘re-entering.’ The current wording is a confusing play on words that is inadvertently causing errors for many taxpayers.
While the ‘once-in-a-lifetime’ switch rule exists, the current implementation feels restrictive. At a minimum, taxpayers filing independently should be given more clarity and perhaps additional chances to correct their choice to prevent costly mistakes.
Once you submit the Form 10IEA, you must have to file your ITR according to that Form 10IEA. No skipping.
Some mistakes costs a lot. It’s always better to consult a professional in these matters instead of DIY.
If form 10 iea is filled for both last ay and this ay, without filling the information of both, itr will not allow to e-verify. To fill this ay form 10iea, you will be forced to opt out of old regime. That’s the whole catch.
Business losses of earlier years can be carried forward as far as I know.
This is what I could manage to find in this regards (but please consult the tax expert 
):
What types of carried forward losses are disallowed under the new regime
Under the new tax regime (Section 115BAC), the following types of carried forward losses are disallowed and cannot be set off or carried forward into future years:
Disallowed Carried Forward Losses
- House Property Losses: Losses from house property, whether incurred in the current or previous years, cannot be set off against any income nor carried forward once the new regime is exercised[1][2][3][4].
- Business Losses Attributable to Disallowed Deductions: Any business loss that arose due to deductions or benefits that are disallowed in the new tax regime (like additional depreciation, SEZ benefits under Section 10AA, or Chapter VI-A deductions) will lapse and cannot be carried forward or set off[5][6][7].
- Unabsorbed Depreciation Linked to Disallowed Deductions: Similar to business losses above, any unabsorbed depreciation carried forward from earlier years that is linked to now-disallowed deductions is also not eligible for set-off[6][7].
- Certain Other Losses: If the income from a source is now exempt under the new regime, any carried forward loss related to such exempt income cannot be set off against taxable income[8][4].
Permitted Carried Forward Losses
- Ordinary Business Losses (not linked to disallowed deductions) are generally allowed for set-off and carry forward per normal rules[5][8].
- Capital Losses (short-term or long-term) can be carried forward and set off as per prevailing rules (eight years for capital losses)[2][9][10].
| Loss Type | Carry Forward Allowed? |
|---|---|
| House Property Loss | No[2][3][4] |
| Business loss (disallowed deductions) | No[5][6][7] |
| Business loss (ordinary) | Yes[5][8] |
| Capital Loss | Yes[2][9][10] |
| Unabsorbed Depreciation (disallowed) | No[6][7] |
The most common types of losses that lapse are house property losses and business losses/depreciation linked to exemptions/deductions no longer allowed in the new regime[5][2][3][4][6]. Ordinary business and capital losses can be carried forward as usual.
Citations:
[1] Set Off and Carry Forward of Losses https://cleartax.in/s/set-off-carry-forward-losses
[2] Can you carry forward losses while filing ITR under … Can you carry forward losses while filing ITR under the new tax regime? Read the fine print - The Economic Times
[3] Section 115BAC New Tax Regime 2025 https://cleartax.in/s/section-115bac-features-new-tax-regime-benefits
[4] Section 115BAC of Income Tax: An Overview of New … Section 115BAC of Income Tax: An Overview of New Tax Regime
[5] Shifting to the new tax regime? This is what becomes … Shifting to the new tax regime? This is what becomes of your carried-forward business loss
[6] Section https://incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?grp=act&cname=cmsid&cval=102120000000075866&searchfilter=
[7] INSERTING SECTION 115BAC, THE NEW TAX RATE MAY … https://icmai.in/TaxationPortal/upload/DT/Article/64_3_09_03_21.pdf
[8] chapter - aggregation of income, set-off and carry forward … https://e-sarthi.lpcps.org.in/uploads/Notes/9/67/416/Unit%20III/UNIT-III_Aggregation_of_Income,_Set-Off_and_Carry_Forward_of_Losses.pdf
[9] One-time set-off of long-term capital loss against STCG One-time set-off of long-term capital loss against STCG: New income tax bill 2025 allows this from tax year 2026-27 onwards - CAalley.com
[10] Set Off and Carry Forward of Losses - Capital Gain Tax https://tax2win.in/guide/set-off-and-carry-forward-of-losses
[11] SET OFF AND CARRY FORWARD OF LOSS UNDER THE … https://incometaxindia.gov.in/Tutorials/21-%20MCQ%20set%20off%20and%20carry%20frwrd.pdf
[12] FAQs on New Tax vs Old Tax Regime FAQs on New Tax vs Old Tax Regime | Income Tax Department
[13] Section 115BAC: New Tax Regime under the Income … https://www.taxbuddy.com/blog/section-115bac-new-tax-regime-under-the-income-tax-act
[14] Instructions to Form ITR-3 (AY 2021-22) https://www.incometax.gov.in/iec/foportal/sites/default/files/2021-05/Instructions_ITR3_AY2021_22.pdf
[15] File ITR-2 Online FAQs File ITR-2 Online FAQs | Income Tax Department
[16] Section 115BAC Of Income Tax Act - Deductions and … https://tax2win.in/guide/section-115bac-of-income-tax-act
[17] Salaried Individuals for AY 2025-26 Salaried Individuals for AY 2025-26 | Income Tax Department
[18] FAQs on Set Off and Carry Forward of Losses https://incometaxindia.gov.in/Pages/faqs.aspx?k=FAQs+on+Set+Off+and+Carry+Forward+of+Losses
[19] Insertion of new sections 115BAC and 115BAD Insertion of new sections 115BAC and 115BAD
Seems like ppl who made this mistake filled Form 10-IEA before even starting to fill ITR form.
I posted image above, & the set of questions; it can’t be clearer than that.
Like muscle memory, one thinks last time i filed Form10, let me do it and then open ITR.
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I did the same mistake in a hurry.
But somehow the portal accepted my return and gave ack as well
though it showed an error stating i didn’t fill the ack number of the latest 10iea. When i clicked it, it went to successful page return. Not sure what’s going to happen?