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Query on income tax

MANOJ MODI (T&A) (40 Points)

06 March 2014

GOOD EVENING TO ALL OF YOU,
I HAVE QUERY REGARDING INCOME TAX. I INCURRED A LOSS OF ₹ 400000 IN FY 2011-12 IN A PVT LTD AND CARRIED FORWARD IT TO NEXT AY WHILE FILING ITRAND FILED IT BEFORE DUE DATE. IN THE NEXT YEAR I DID NOT FILE ITS ITR ON DUE DATE ie. 30-9-13. CAN I SETOFF MY LAST YEAR BROUGHT FORWARD BUSINESS LOSS IN BELATED RETURN OF FY 2012-13 ?

PLZ GUIDE ME IN THE MATTER AND DO THE NEEDFUL.

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7 Replies

SIVARAMAKRISHNAN P.G (CA final student) (129 Points)
Replied 06 March 2014

I think the company can set-off its previous year's carried forward loss even if current year's return is filed beyond the due date.

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Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 06 March 2014

Dear manoj you can take the benefit of losses of those years whose itr were filled by you before due date. In this year when you file your return mention in brought forward losses schdule the losses and the dates on which you have filled your return. It will give the benifit of the same automaticly in current year. I suggest you to file your return before due date as you are loss incurring company. regards to you

raviteja (IPCC student) (32 Points)
Replied 06 March 2014

Whether the business has incurred loss or profit during the previous year,an individual must file his returns with ITD in the following assessment year to claim the setoff and carry forward of losses.

Pradeep Gupta (Accounts Manager) (298 Points)
Replied 07 March 2014

Only current year loss can't be carried forward if the return has not been filed by the due date u/s 139(1).

Therefore, there is no restriction on carried forward of the business lossess which has been filed on due time and set off thereon.

V!$H@L $!ngh@L (free.........) (87 Points)
Replied 07 March 2014

agreed with pradeep gupta answer

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punit padalia (Own practice) (77 Points)
Replied 07 March 2014

Rightly said by Pradeep gupta.

Arpit Pachisia (CA) (734 Points)
Replied 07 March 2014

Sorry Shaktiman,

As you had not filed timely return, so you are not eligible for set off of brought forward business losses. Have a look at other past brought forward losses upto earlier 8 years, if return was timely filed.