Filing of ITR2 subsequently when ITR3 is defective and not considered

In the previous year I did online share trading and made losses. For AY 2019-20 I have not yet filed ITR3 but I have accepted audit report (3CB-3CD uploaded by CA limited to business account) but I did not upload ITR3 for the reason that 30 to 40% losses are getting setoff with other incomes in ITR3.

So, ITR3 filing as of now is defective and return will be considered as not filed by IT Department if defect is not rectified in stipulated time. For the time being I want to keep these losses as it is as I want to setoff losses with future profits only. So I shall file ITR2 only for AY2019-20 and subsequently for AY2020-21 or AY2021-22 I shall file ITR3 and claim these losses. So please confirm me can I do like this ?

Replies (2)

As return not filed u/s. 139(3) of the act; losses will not be allowed to be carried forward; better to set off in previous year itself...

@ Raghvendra
What do you mean by Audit report limited to business account ?

To avail carry forward of losses, the ITR ought to have been filed before due date (including
extended due date) of return filing.

You can file ITR3 now belatedly and claim set off available against other income heads.

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