I have incurred a business loss of 5 lakhs during the A.y 2010-11 out of which 2 lakhs is depreciation loss i have filed my return after the due date mentioned in Sec 139(1) can i c/f both the losses to future??
8 Replies
Sunshine
(Helping All)
(10575 Points)
Replied 26 October 2010
according to sec 80 the assesse must file the return on time in order to carry forward a business loss....or else he wont be allowed to carry it forward...
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 26 October 2010
Dear janani,
Sec.80 states that unless loss return is filed in accordance with the due date specified u/s.139(3) and loss is determined, the loss cannot be carried forward. Hence, ur business loss cannot be carried forward. However, ur depreciation loss of Rs.2 Lacs can be carried forward, coz, it is not covered by Sec.80. It is covered u/s.32. Similarly loss from HP u/s.71B can be carried forward without filing the return within the stipulated time.
In the case of belated filing of loss return, the assesse may seek remedy by making an application to the CBDT for relaxation of time to carry forward the loss for set-off-CIRCULAR NO.8/2001 DT/16/5/01
Azim Khan ACA,CS,CMA*,LLB*
(Proprietor)
(1312 Points)
Replied 26 October 2010
agreed with all, however after the enforcement of DTC, such limitation of time will not be available. such loss can be c/f for any number of years till they exhaust.
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 27 October 2010
Until unless file Return u/s 139(3) the loss cannot be carry forward.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 27 October 2010
Dear Santhosh,
Sec.80 states that unless loss return is filed in accordance with the due date specified u/s.139(3) and loss is determined, the loss cannot be carried forward. Hence, the business loss cannot be carried forward. However, the depreciation loss of Rs.2 Lacs can be carried forward, coz, it is not covered by Sec.80. It is covered u/s.32. Similarly loss from HP u/s.71B can be carried forward without filing the return within the stipulated time.
In the case of belated filing of loss return, the assesse may seek remedy by making an application to the CBDT for relaxation of time to carry forward the loss for set-off-CIRCULAR NO.8/2001 DT/16/5/01
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 27 October 2010
Thanks For Clarification
Dear CA.G.Muguntha Narayanan SIr.
Nabeel
(CA)
(3288 Points)
Replied 28 October 2010
your loss cant be carried forward... As per sec 80 loss return must be filed by the assessee on time to carry forward the losses...
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