New tax regime: can you set off old losses?

I claimed business losses two years ago under the old tax regime and carried them forward in my previous year's Income Tax Return (ITR), which was also filed under the old regime.

- Bhawna Kakkar

In the current assessment year, I am considering switching to the new tax regime. Will I still be allowed to carry forward and set off the business losses reported under the old regime, now that I plan to opt for the new regime?

—Name withheld on request

The new tax regime was made the default tax system for individuals starting from the last assessment year 2024-25, unless they specifically opt out of it to continue with the old regime. Taxpayers with business income must tread carefully—especially those carrying forward business losses or unabsorbed depreciation from earlier years—while choosing between the old and new regimes this year.