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Carry forward of loss

APUSACH (STUDENT) (75 Points)

20 June 2016

the trust without 12 a registration carrying on business(resorts and cottages) from 2010-11 but not filled the returns till now, they have loss from fy 2010-11 can the loss be carry forward for the subsequent years

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4 Replies

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 20 June 2016

As per section 139(3),if any person who has sustained loss in any P.Y. under the head "Profit and gains of business and Profession" and claims that the loss should be carried forward, he shall furnish a return of loss within the time limit prescribed under section 139(1).

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Shishir Nayak ((Expert)) (369 Points)
Replied 20 June 2016

Section 157 of the Income Tax (IT) Act, 1961, states that there are two conditions to be satisfied before loss is allowed to be carried forward. First, the return of loss must be submitted on or before the due date. Second, the loss has been determined by the assessing officer (AO) The AO needs to notify the assessee by an order in writing the amount computed by him which the assessee is entitled to carry forward. According to Section 80 of the IT Act, carryforward is allowed only when such loss has been determined in pursuance of return of loss submitted by the assessee on or before due date for filing return prescribed under Section 139(1) of the IT Act.

APUSACH (STUDENT) (75 Points)
Replied 20 June 2016

which ITR form to be filed for the above said instance?

Shishir Nayak ((Expert)) (369 Points)
Replied 20 June 2016

ITR-7 is filed when persons including companies fall under section 139(4A) i.e Trust Income. But Sadly you can't file the said year loss now as the time limit has lapsed.