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Carry forward of loss

Renuka Jaipuria (Proprietor) (60 Points)

21 September 2016

Original itr 5 is filled before due date . If revised return file after due date can loss in the return be carry forward in next year

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FCA surbhi jain (FCA) (897 Points)
Replied 21 September 2016

No. Carry forward of loss is allowed only when you file return before due date. Even if return is revised and filed after due date,you loose the benefit of carry forward of losses.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 22 September 2016

The provisions of filing of income tax returns in case of Loss are governed by Section 139(3) of the Income Tax Act-
If there is a loss arising under head Capital Gains or under head “Profits and Gains of Business and Profession”, filing of return would be mandatory if this loss is to be carried forward to the next year and set-off against future income. The Income Tax Return showing the loss should be filed on or before the due date if this loss is to be carried forward to the next year and set-off against future income.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 22 September 2016

So if your original return is filed before the due date showing the loss then it can be definitely carried forward. Return filed on or before the due date can only be revised under the act, so filing a revised return after due date will not affect the validity of your claim for carry forward of losses so long as the requirement of showing loss in original return is fulfilled.

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Rajesh Kumar Gupta (Senior Divisional Manager) (714 Points)
Replied 22 September 2016

I understand filing of revised return will replace the original one and only revised return will be processed during the assessment.

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Renuka Jaipuria (Proprietor) (60 Points)
Replied 22 September 2016

It mean if original return is filled before due date with correct figure of loss, and it is revised after due date due to some mistake or omission, we can carry forward loss to next year. AM I correct?