Belated return - carry forward loss

[madhavvan n]

Income tax return has not been filed on time co has business losses carried forward can we file belated return and carry forward the loss what options w ehave

[Mukesh Kumar]

it is mandatory that you should file the return of loss within the prescribed time limit for the purpose of claiming benefit of loss incurred in the relevant assessment year -see section 139(4) of the income tax act, 1961. Once you file the return of loss within time limit and you qualify the conditions of section 139(3), you can claim the benefit of carried forward lossed to be setoff with the income of subsequent years under relevant provisions of section/s 72,73,74 and 74A. For the return of subsequent years, you can claim the benefit of carried forward lossed even if the return is belated return within the meaning of section 139(3) of the income tax act, 1961.

AI Summary

Carry forward of business losses requires timely filing of the loss return to preserve loss setoff rights in later years. The right to carry forward business losses depends on filing the return for the loss year within the prescribed time limit and meeting statutory eligibility conditions; if the loss return is timely and eligible, losses may be carried forward and set off in later years, and subsequent belated returns may still claim those carried forward losses provided the original filing requirements were satisfied.