Set off and carry forward of losses

Tax queries 883 views 2 replies

nimesh

Executive

33 Points Joined October 2009

As per Sec. 80 of the I.T. Act, to carry forward loss under a particular head of income(except income from the house property), the assessee is required to submit his return of income within the time limit given u/s 139(1). now, the assessee has incurred non-speculative business loss as under:

FY	LOSS (Rs.)
2005-06	5 lacs
2006-07	2 lacs
2007-08	1 lac
2008-09	2.5 lac(profit)

suppose, the assessee is not able to file the return of 2006-07 within the time limit u/s 139(1). All other returns are filed within time. does it mean, he will not be allowed to carry forward the entire loss upto that AY (i.e.,7 lacs) next year, though the return for AY 2005-06 was filed by him within time? plz. reply.

Replies (2)

pahuja

C.A Final Student

472 Points Joined July 2011

Mr. Nimesh legaly you can not carry forward business loss amounting Rs. 7 lac, coz you have not complied the conditions of sec. 80 and 139(1). But still you have an option to revise your return of the year in which you have made blunder to not show the loss. And as per sec 139(5), you can revise ur return any number of time but your return should not be come into the sight of income tax officers.

pahuja

C.A Final Student

472 Points Joined July 2011

And there is no any interest or panalty attracted to file revise return. Thanks and regards Suraj pahuja (pahujasuraj @ gmail.com), for further queries you may mail me freely.