LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Carry forward of loss of earlier years

C.A. Nikhil Monga (Chartered Accountant) (82 Points)

29 September 2014

Hello everyone,

I just want to confirm that in case, return of previous year is not filed in time, can we carry forward the losses brought forward from earlier previous years. e.g. In AY 2013-14, we filed the return on 20.09.2013 but for AY 2014-15, if we file the ITR after 30.09.2014, can we carry forward the losses of AY 2013-14.

Note: Assessee is a Private Limited Company and is not liable for Tax Audit

Reply
Follow
Share

33 Replies

CA Madhvi (...Blissful...) (1658 Points)
Replied 29 September 2014

You can very well carry forward all losses pf previous yrs excerpt loss for the AY2014-15(if any).

1 Like

CA SUKSHAM ARORA (CA) (569 Points)
Replied 29 September 2014

yes, u can

harshit (article ship) (24 Points)
Replied 29 September 2014

no u cannot carry forward loss if u have not filled ITR witin time period except some loss like unabsorbed depreciation

Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 29 September 2014

I think u can carry forward loss becoz section says that if u want to carry forward loss u have to file return before due date of filing return and due date is now 30.11.2014.

Mahesh8348 (sales tax assistant) (21 Points)
Replied 29 September 2014

You can not carry forward your previous year losses without filing the return within the due date.

GAURAV KUMAR SRIVASTAVA (student) (34 Points)
Replied 29 September 2014

You can carry forward the losses once u file the return on time. Suppose u have a PGBP loss in A.Y. 2012-13 and in that year u file return on time u can carry forward the loss for 8 next assessment year inspite of the fact that you have not file the next A.Y return on time. If means u have a loss return and u file return on time then you can carry forward return as per law. but there are certain losses which van be claimed while not filling the return on time. Such losses are 1. Loss under the head House property 2 brought forward of depreciation . above two losses can be claimed while not filling the return on time.

V K Vijayaraghavan (PRACTICE) (186 Points)
Replied 29 September 2014

I fail to understand this provision of late filing and the assessee cannot c/f loss. The assese is in serious problem and hence have to be given consideration to look into issues . this needs to be debated in open forum

CA Santosh Walunj (Manager - Accounts & Finance) (21 Points)
Replied 29 September 2014

U can not carry forward business loss but u can carry forward unabsorbed depreciation

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 30 September 2014

According to Section 80, of the IT Act, carry-forward is allowed only when such loss has been determined in pursuance of return of loss submitted by the assessee on or before the due date for filing returns prescribed under Section 139(1) of the IT Act. However, loss under, ‘Income from house property', unabsorbed depreciation, capital expenditure on scientific research, and family planning expenditure can be carried forward... even if the return is not filed within the due date mentioned under Section 139(1).

in your case all losses can be carried forward except for the AY 2014-15 as ITR is not been filled widin time period..

VIVEK KARMANI (JOB) (58 Points)
Replied 30 September 2014

Be pricise to ur question.. Business losses of last 8 yrs other than previous are allowed to be carried forward subject to filling of return of the concerned year before the due date. U can't carry forward the losses of current period in next year if u have not filled the return on time.

Rishabh (Article) (22 Points)
Replied 30 September 2014

correctly said by CA Madhvi

MAHESH RAJPUT (CA Final) (222 Points)
Replied 30 September 2014

CA Madhvi is 100% correct.... U can c/fd the loss of py AY except losses if AY 14-15 ( if any)

Ankit Jain (Student) (27 Points)
Replied 30 September 2014

You can carry forward losses of past year or years because the return or returns had been filed on time subject to the maximum of 8 years. However, the losses of current year cannot be carry forward to the next year due to late filing of return.

avinash (student) (34 Points)
Replied 30 September 2014

Yes, you can carry forward the losses of earlier years but you can not carry forward the loss under head PGBP & capital gain Of which return is not filed within the time prescribed by law.