139(9) Defective Return Notice

Hi

 

We have received a notice for defective return for AY 2020-2021. We were not able to file a rectification return due to portal issues and now the due date for submission is closed. We have capital losses and business lossed carried forward from last year. Can we set off those losses this year or have to wait for AY 20-21 return to be processed.

 

Thanks

Replies (3)
Quick Summary
This discussion addresses a defective return notice for AY 20-21 where the rectification deadline has passed due to portal issues. The user is concerned about carrying forward capital and business losses. The advice given is that the return may be treated as invalid, and a condonation request might be necessary to file the return. Until this is resolved, losses cannot be claimed in subsequent years.

Defective return pertaining to the year AY 20 21.
RETURN DUE DATE OVER. TIME EXTENDED.

I understand that you could not correct that defective return. It means now it is invalid (treated as not filed).

Now, you may file a condonation request for filing AY 20-21 ITR. Until then, you cannot claim that loss in any year.

https://www.incometax.gov.in/iec/foportal/help/how-to-raise-e-filing-service-requests

You cannot file your return now.
However, you can send an intimation for rectifying the return.Once the AO has accepted file a rectification return with requisite penalty and delay.

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