Return of losses us 139(3) followed by chapter VI consisting of section 70 to 80.
1) if the assessee consisting of any losses , the loss return shall be filled us 139(3).
2) for company and firm it is mandatory to filled their return even in the cases of losses.
3) however other assessee can voluntarily filed their return of losses us 139(3).
4) if the ROI us 139(3) is filled within due date then it will be considered as a return us 139(1).
5) chapter VI which deals with set of losses and carry forward deals certain losses not to be "carried forward" if ROI is not filled within due date. It means restrictions is only on carry forward. Hence current year losses can easily be set off even if ROI is filled after the due date.
6) losses under House property can be set off and carried forward even if the ROI filled after the due date.
Some important notes regarding HP losses..
a) within head in the same assessment year HP losses can be set of easily without thinking of 2,00,000 limits..so don't think about that.. (section 70)
b) outside the head in the same assessment year losses can be set off maximum UpTo 2,00,000 even if the ROI is filled after the due date. (Section 71).
C) unabsorbed losses of HP in the upcoming year can be carried forward and set off against the HP head only.. without any restrictions of monetary limits and return filing date obligation.
7) section 80 said losses under the head capital gains, PGBP, Speculation business, specified business us 35 AD can be carried only when the return is filled within due date us 139(1).
8) so if question of AY 19-20, assesse sustain a losses under Capital gain of assessment year 19-20, and ROI is filled after the due date then always set off such losses.because restrictions is only in carried forward of losses.(section 80)
9) if say total taxable income is under PGBP head for AY 19-20, 15,00,000 before set off the losses and losses are 20,00,000 then this net losses of Rs 5 lacs shall be carried forward to next ay 20-21 only when the ROI is filled within due date. This losses of Rs 5,00,000 is known as brought forward losses for ay 20-21 and it can be set off against only the head PGBP and no other head..
Now suppose in ay 20-21 the net income is 6,00,000 and ROI is filled after due date whether this brought Forward losses of Rs 5,00,000 can be set off... Answer is 100 percent yes.. because the restrictions of filing the return within due date is applicable only for carrying forward of losses.
10) hence to sum up, even if ROI filled after the due date/ even if not filled, the current year losses and brought forward losses under any head can be set off without putting any restrictions of filling of ROI.
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