Set off of loss not allowed

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Terry

ceo

59 Points Posted on 09 September 2013

Hi All

I had filed Income Tax return for AY 2010-11 manually. In nutshell, I had declared income as follows

Salary Rs 2406721, House Rent 11878(net of std deduction) Short Term Capital Gains 52135 and Income from Other Sources as 13150 Total Rs 2483884

I had also claimed set off of Brought FOrward Losses of Rs 4000 from Income from House Property and Rs 40000 of Short Term Losses of previous year

Somehow the Income Tax department while making the income tax calculations did not allow me these deductions. Request if any one can suggest me way forward as How to appeal or ask for rectification

Thanks in advance

Replies (2)

V Vara Prasad

Chartered Accountant

212 Points Posted on 09 September 2013

First you have to verify whether you filed the previous year return within due date or not.

if u do not file within due date then u cannot carry forward your losses.

For setting off carry forward losses you can setoff only against income of the same head and no inter head adjustment is possible.

Terry

ceo

59 Points Posted on 09 September 2013

Dear Vara Prasad Ji

Thanks for your reply

Earlier return was filed in time and the adjustment has been sought under same heads as there was loss

Please advise what should i do, should i file application under section 154?

However I am confused for one thing that when i use the excel utility issued by Income Tax department for the given Assessment year, the loss is being disallowed by the utility

I am unable to know the reasons,

Please advise

regards