Income loss in ITR2

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This discussion explores how individuals can declare income loss in their ITR2 filings, particularly concerning losses from Fixed Deposits (FDs) due to insolvency like DHFL. While initially suggested to be reported under long-term capital gains, it was clarified that losses on FDs, where interest is treated as regular income, are generally not claimable as a capital loss. The consensus is that only business losses can typically be claimed.

Siva

Siva (Querist)
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19 July 2022 Hi all, how to show Income loss in ITR2 for individiduals.

I am planning to capture the erosion in FDs like DHFL in which depositors lots more than 70% of their invested amount [after insolvency settlement] as a Income loss. Is there a specific section where this can be captured

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 July 2022 Capture it under long term capital gains schedule.
Enter purchase value and realised value you will get long term capital loss.
It can be adjusted against current year long term capital gains or carried forward.

Siva

Siva (Querist)
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19 July 2022 Thanks for your reply. The money lost is not in Equity or MFs. It is the original invested money in FD whose interst is always accounted in regular income as income from other sources. Is there a way to show part of income loss for individiuals and I presume that is what will be done by institutions who have incurred losses

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 July 2022 In such a case no loss can be claimed, it's only business loss can be claimed.

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