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Set off of loss during extended due date

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Gudipati Roja

Audit manager

20 Points Posted on 18 May 2020

Hi everone,

Assesse has business income/Salary income of Rs. 45L and he has a loss of 8L from trading of shares(non speculative)...can the assesse able to claim the loss if he filed the return on or before 30th November.? As due date is extended from July 31st

Replies (2)

Quick Summary

This discussion clarifies whether an individual can carry forward an £8 lakh loss from non-speculative share trading if their income tax return (ITR) is filed by the extended deadline of 30th November. The consensus is that to carry forward such capital losses, the ITR must be filed by the original due date specified under section 139(1), regardless of any extensions for filing. Short-term capital losses can be offset against short-term or long-term capital gains, and long-term capital losses can only be offset against long-term capital gains.

suraj zanwar

Student CA IPC / IPCC

20 Points Posted on 18 May 2020

the net result of the computation under the head “Capital gains” is a loss, the whole of the loss shall be carried forward to the following assessment year as follows—

Long-term capital loss can be set off only against long-term capital gains.

Short-term capital loss can be set off against short-term or long-term capital gains.

Such loss can be carried forward for 8 (eight) assessment years immediately succeeding the assessment year in which the loss was first computed.

Such loss cannot be carried forward unless return is filed within the time limit of section 139(1)

Assesese able to carried forward such loss if he fill he return before the due date.