What do we mean by Return of Loss or when we are required to fill return of Loss under Income Tax Act

A return of loss may be submitted by the due date prescribed in section 139(1).

  1. The following losses cannot be carried forward if the return of loss is not submitted in time-    
    1. Business loss (speculative)
    2. Capital loss; or
    3. Owning and maintaining race horse’s loss.

Notes:

  1. Such return shall be treated as a return u/s 139(1).

Use of word ‘may’ in language suggest that the submission of return is discretionary and not compulsory. However section, 80 provides that if a return of loss is not submitted by the due date, the assessee cannot claim carry forward of certain losses.

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