set off and carry frwd of long term cap. gain loss
This query is : Resolved
07 December 2009
income under long term capital-gain is a loss :rs.50000.
income under other heads excluding capital gain is rs.250000.
return is filed on 31.12.2009 for a.y. 2009-10. can we set-off or carry forward the loss under cap. gain if return is filed after due date.N what if the net result of our income from other sources is loss of rs.250000 instead of profit, I.E. net computation is showing loss.
show result in case of male below 60 yrs. n please reply fast, i'm in trouble.
income under other heads excluding capital gain is rs.250000.
return is filed on 31.12.2009 for a.y. 2009-10. can we set-off or carry forward the loss under cap. gain if return is filed after due date.N what if the net result of our income from other sources is loss of rs.250000 instead of profit, I.E. net computation is showing loss.
show result in case of male below 60 yrs. n please reply fast, i'm in trouble.
10 December 2009
Hi friend,
if the return is file after due date than accouding to section 80 read with section 139,
you cann't carry forward loss in the next year,
how ever is restriction is on carry forward,
if there is any LTCG in the same A.Y. then this restriction is not applicable in setoff of lossess, in the same year return,
if the return is file after due date than accouding to section 80 read with section 139,
you cann't carry forward loss in the next year,
how ever is restriction is on carry forward,
if there is any LTCG in the same A.Y. then this restriction is not applicable in setoff of lossess, in the same year return,
11 December 2009
thanks friend.
but still i'm not sure abt. the return of loss filed after due date.
but still i'm not sure abt. the return of loss filed after due date.
25 July 2025
You're absolutely right to seek clarity — this is a **critical compliance issue** under the **Income Tax Act, 1961**. Let's break it down clearly and quickly for your scenario.
---
## ✅ **Your Case (AY 2009–10):**
* **Long-Term Capital Gain (LTCG)** = **Loss of ₹50,000**
* **Other Income (non-capital gains)** = ₹2,50,000 (or loss in alternate scenario)
* **Return filed** = **31.12.2009** (i.e., **after due date** under Section 139(1))
* **Assessee** = **Male, below 60 years of age**
* **Due date for AY 2009–10 (non-audit cases)** = **31.07.2009**
---
## ⚖️ **Relevant Legal Provisions:**
### 📘 **Section 139(1)** — Timely filing of return
### 📘 **Section 139(3)** — Return of loss
> Loss under the head **"Capital Gains"** or **"Business/Profession"** **can be carried forward only if the return is filed within due date** under Section 139(1).
### 📘 **Section 80** — Restriction on carry forward
> *“No loss shall be carried forward unless it has been determined in return filed under Section 139(3).”*
---
## 🔍 **So, what happens?**
### ✅ **Scenario 1 — Can you *set off* LTCG loss in same year?**
Yes. Even if return is late, **loss under LTCG can be set off in the same assessment year** **against LTCG or STCG** (if available).
> ⛔ However, since you have **no capital gains income this year**, **no set-off is possible in same year**.
---
### 🚫 **Scenario 2 — Can you *carry forward* LTCG loss?**
**No.** Since return is filed **after the due date**, and LTCG loss is not set off in same year, **you lose the right to carry forward** the ₹50,000 loss to future years.
> **This is specifically barred** under **Section 80 read with Section 139(3)**.
---
### 🚫 **Scenario 3 — What if total income is a net loss (other heads too)?**
Still, **no change**. Capital losses (short- or long-term) **must be reported in time** to be **carried forward**, regardless of overall computation.
---
## 📊 **Summary:**
| **Item** | **Allowed?** | **Reason** |
| --------------------------------------------------- | ------------- | ---------------------------------------- |
| Set-off LTCG loss against other income | ❌ Not allowed | LTCG loss can only be set off against CG |
| Carry forward LTCG loss (₹50,000) | ❌ Not allowed | Return filed after due date |
| Set-off in same year if CG existed | ✅ Yes | Permitted even with late return |
| Carry forward business or CG loss if return is late | ❌ No | Section 80 + Section 139(3) restriction |
---
## ✅ Best Practices (for future reference):
* Always **file return within due date** if you have **capital or business losses**.
* If no taxable income, but loss exists — still file in time under **Section 139(3)** to preserve the right to carry forward.
---
Let me know if you want a sample format or explanation letter in case of notice or audit.
You're not alone — this happens often. Stay compliant next year, and you’re good.
---
## ✅ **Your Case (AY 2009–10):**
* **Long-Term Capital Gain (LTCG)** = **Loss of ₹50,000**
* **Other Income (non-capital gains)** = ₹2,50,000 (or loss in alternate scenario)
* **Return filed** = **31.12.2009** (i.e., **after due date** under Section 139(1))
* **Assessee** = **Male, below 60 years of age**
* **Due date for AY 2009–10 (non-audit cases)** = **31.07.2009**
---
## ⚖️ **Relevant Legal Provisions:**
### 📘 **Section 139(1)** — Timely filing of return
### 📘 **Section 139(3)** — Return of loss
> Loss under the head **"Capital Gains"** or **"Business/Profession"** **can be carried forward only if the return is filed within due date** under Section 139(1).
### 📘 **Section 80** — Restriction on carry forward
> *“No loss shall be carried forward unless it has been determined in return filed under Section 139(3).”*
---
## 🔍 **So, what happens?**
### ✅ **Scenario 1 — Can you *set off* LTCG loss in same year?**
Yes. Even if return is late, **loss under LTCG can be set off in the same assessment year** **against LTCG or STCG** (if available).
> ⛔ However, since you have **no capital gains income this year**, **no set-off is possible in same year**.
---
### 🚫 **Scenario 2 — Can you *carry forward* LTCG loss?**
**No.** Since return is filed **after the due date**, and LTCG loss is not set off in same year, **you lose the right to carry forward** the ₹50,000 loss to future years.
> **This is specifically barred** under **Section 80 read with Section 139(3)**.
---
### 🚫 **Scenario 3 — What if total income is a net loss (other heads too)?**
Still, **no change**. Capital losses (short- or long-term) **must be reported in time** to be **carried forward**, regardless of overall computation.
---
## 📊 **Summary:**
| **Item** | **Allowed?** | **Reason** |
| --------------------------------------------------- | ------------- | ---------------------------------------- |
| Set-off LTCG loss against other income | ❌ Not allowed | LTCG loss can only be set off against CG |
| Carry forward LTCG loss (₹50,000) | ❌ Not allowed | Return filed after due date |
| Set-off in same year if CG existed | ✅ Yes | Permitted even with late return |
| Carry forward business or CG loss if return is late | ❌ No | Section 80 + Section 139(3) restriction |
---
## ✅ Best Practices (for future reference):
* Always **file return within due date** if you have **capital or business losses**.
* If no taxable income, but loss exists — still file in time under **Section 139(3)** to preserve the right to carry forward.
---
Let me know if you want a sample format or explanation letter in case of notice or audit.
You're not alone — this happens often. Stay compliant next year, and you’re good.
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