Carry forward loss

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Mohan (Querist)
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03 August 2013 In AY 2011-12, I have filed ITR-2 with salary income and short term capital loss (equity).

1) In AY 2012-13, I did not file returns as I did not have any income. Will the last year reported lossed be carried forward though I did not file returns this year ?

2) In AY 2013-14, I have 50,000 Rs loss on long term capitals (equity). And my income from other sources is less than 50,000. As the long term equity loss cannot be carried forward or adjusted, I planned not to file returns. Is there any disadvantage with my decision ?

Rupesh Jain

Rupesh Jain (Expert)
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03 August 2013 if you file ITR on or before due hen you have to carry forward the loss otherwise you cannot adjust this loss in next year income .

if you not file itr on time then you loss the right to carry forward the loss

Mohan

Mohan (Querist)
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03 August 2013 Sorry, your reply is not clear and did not answer my questions. Please read my modified post again.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 August 2013 If you do not want to c/fd the ST Capital Loss do not file the returns as you have no income except Income from other sources and that is below Rs. 50000. You have been forced to sale your long term investment to meet the financial requirement. I do not think that you will rethink to invest in the capital market in near future in the absence of fresh funds for investment.
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The only disadvantage is -when ever you will be required by the "random" notices of IT department for filing the returns or for furnishing details of any (big) transaction , you may find yourself in a little bit difficult position to explain the things taken place. If you file returns regularly, you can explain the things easily.
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Now, judge yourself by applying the criteria mentioned above.
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Mohan

Mohan (Querist)
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03 August 2013 Thanks for the clarification on long term loss.

In 2009, I have shown short term equity loss in Returns. I did not file returns after that. Consider, if I get short term equity profit next year, can I set off against loss shown 2 years before? Consider the fact that I did not file returns after losses shown in 2009 returns. Note that already, I missed returns for AY 2012-13.

Simply, my question is if a loss is shown in returns, do we need to file the returns every year after that even though no Income in subsequent years?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 August 2013 For carrying forward the loss, you are supposed to file the return to establish easily your claim of loss. In the absence of this, unnecessary litigation situation is possible.

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