Schedule CFL is not saving 0 as carry-forward losses for belated returns!!

In ITR-3, for a belated return, Schedule CFL is not saving 0 as carry forward losses. In the validating page, it is showing that belated return cannot carry forward losses to futures years. That is understandable. But it just doesn't remember the input of zero as the amoount to carry forward!! What to do?

 

Replies (2)
Quick Summary
In belated ITR returns, losses cannot be carried forward, so Schedule CFL is ignored. Zero may not be saved due to utility behavior or bug. Proceed with filing without forcing CFL and ensure no carry forward claim is made.

You do not need to force Schedule CFL to retain zero. For a belated return, Schedule CFL should effectively be NIL / ignored. The validation message is informational, not fatal. Proceed with filing without attempting to override CFL, ensuring losses are set off to zero in current year schedules and not claimed for carry-forward anywhere.

  • If the utility auto-populates a positive loss in CFL despite belated status, stop and review.

  • If the loss relates to:

    • Speculation / specified business (73 / 73A)

    • Capital losses with complex intra-head set-off

  • If filing is under defective return correction or scrutiny → escalate to your CA.

In the ITR utility app, Schedule CFL was auto‑populating the loss despite it being a belated return. A bug in the app seemed to be at play!

The return was submitted regardless of the "errors", and an immediate notice of e‑Proceedings was received. A response was submitted by agreeing to the obvious, and the problem was solved!

 

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