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

Filing Late Tax Returns? Carry Forward Business Losses Only If Filed Within Time Under Section 139(4) of IT Act. A discussion on a forum addressed the issue of filing belated income tax returns with business losses carried forward. A participant inquired about the possibility of filing a late return to carry forward losses. The response clarified that to claim the benefit of carrying forward losses, the return must be filed within the prescribed time limit as per Section 139(4) of the Income Tax Act, 1961. If the return is filed on time and conditions under Section 139(3) are met, losses can be carried forward and offset against future income as per Sections 72, 73, 74, and 74A.