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Set off of loss in current year.

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aman tak

39 Points Posted on 10 January 2020

if we had filed original return before due date and after that we had revised the original return than loss of eariler year is allowable in the current year and in current year there is not a loss return so does it make any difference if we revised the return but originally we had filed before due date of return?
and please mention relevant section also.

Replies (3)

Quick Summary

This discussion clarifies whether revising an original tax return, filed before the due date, impacts the ability to set off earlier years' losses against current year profits. The consensus is that revising a return filed on time does not prevent the set-off of brought-forward losses, provided the current year shows a profit. Unused losses can still be carried forward to subsequent years.

Kapadia Pravin

17269 Points Posted on 11 January 2020

Set off of loss of earlier years will be available for set off in original and revised return both.

But if current year has a loss then it will no be available for set off and carry forward.

Earlier years b/f losses you can carry forward to next year as usual.