ITR RETURNS

File ITR-2 for AY 2026-27. Since there is zero business income this year, the portal will not accept ITR-3. Switching to ITR-2 will not affect your brought-forward Long-Term Capital Loss ($LTCL$) of $₹6,211$; it can be seamlessly updated and carried forward using Schedule CFL within the ITR-2 form.

I am very grateful to your professional advice. Your quick and prompt advice has dispelled my doubts and given confidence to file IT returns independently. I am a senior citizen. I thank you very much. I am also very grateful to CACLUB INDIA for providing this forum which enables citizens to get professional advice to taxpayers, tax practioners and enthusiasts.

Since you have no business or professional income in AY 2026-27, I believe you generally cannot file ITR-3 just to carry forward a previous capital loss. If your income consists only of pension, house property, dividends, and capital gains, ITR-2 is the appropriate return form.

The good news is that your brought-forward long-term capital loss can still be carried forward, provided it was correctly reported in your earlier return and your current return is filed within the due date. If I were in your situation and wanted to avoid any mistakes in Schedule CFL, I'd get it reviewed by Kanakkupillai to ensure the loss is reflected correctly.

In my view, the return form (ITR-2 vs. ITR-3) does not affect your eligibility to carry forward the loss, as long as you're using the correct form for your current year's income.

Since the portal is not allowing you to file ITR-3 due to the absence of business income, I would go ahead with ITR-2 and make sure the carried-forward loss is properly disclosed before submitting the return.