Carry forward business loss

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Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2014 if i have not filed ITR within due date then carry forward losses as well as cureent year loss can not be carried forward.

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 September 2014 past losses are carried forward...only the current year losses are not.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

21 September 2014 Yes. The biggest disadvantage of belated return filed u/s 139(4) is:

1) Losses can not be carried forward
2) Belated return can not be revised.

For this very reason it is always advised to file the return within due date u/s 139(1).

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2014 sanjay sir,
i want to know that previous losses can br carried forward or not.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

21 September 2014 Past losses can be carried forward.

Further, the Central Board of Direct Taxes (CBDT) clarified on 16 May 2001, that by virtue of power granted under Section 119(2)(b) of the IT Act, the delay in filing of loss return can be condoned and the loss can be allowed to be carried forward to subsequent years. Amount of loss up to Rs 10000 can be condoned by the Commissioner of Income Tax, from Rs 10001 up to Rs 1 lakh by the Chief Commissioner of Income Tax, and exceeding Rs one lakh by the CBDT.

See link below--

https://incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Circulars/CBDTLaws/HTMLFiles/sec119_8_01.htm

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2014 many many thanks sanjay sir for reply my question.

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