Is the taxation Loss set-off rule applicable to the new tax regime?

Is the taxation Loss set-off rule applicable to the new tax regime?

@Quicko Can you.

In my view, there is no change in rules under “capital losses”

Copying an extract from the website clear tax. This was posted on 04.01.2021 so must be latest.

Capital Losses :

  • Can be carry forward up to next 8 assessment years from the assessment year in which the loss was incurred
  • Long-term capital losses can be adjusted only against long-term capital gains.
  • Short-term capital losses can be set off against long-term capital gains as well as short-term capital gains
  • Cannot be carried forward if the return is not filed within the original due date

Hi @Jack_R,

Here’s how losses are treated under the new tax regime:

  1. Losses from house property can only be set off against other income from house property. Moreover, losses from income from house property cannot be carried forward in the new income tax regime.

  2. You can set off and carry forward short-term & long-term capital losses, derivatives trading losses in the new tax regime. Since, only the losses relating to deductions & exemptions withdrawn under clause (i) of sub-section (2) of section 115BAC cannot be set off or carried forward, for eg: House property losses, additional depreciation, etc.

Yes, You can!

Hello @Quicko,

If I want to file tax return according to New Tax regime, then do I have to submit the Form 10-IE to IT department before filing the actual return? If I am filing through Quicko IT App, do I need to send the Form 10-IE?

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Hi @Gaurav2k,

Yes, when opting for the New Tax Regime you need to file Form 10-IE before filing your Income Tax Return.

Here’s how you can file your Form 10-IE on the Income-tax e-filing portal