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CA Intermediate · Taxation · Provisions for filing Return of Income and Self Assessment

Anita Desai, a resident individual with no other income in tax year 2026-27, incurred a business loss of Rs 3,00,000 and a loss from house property of Rs 1,50,000. She furnished her original return only on 10 December 2027, after the due date of 31 July 2027, although she was otherwise eligible to file a belated return. How much loss can she carry forward to future tax years?

She can carry forward only Rs 1,50,000, the house property loss. Business losses can be carried forward only when the return is filed by the due date, so the Rs 3,00,000 business loss is lost. House property loss remains eligible for carry forward even though the return was filed late.

  1. ARs 4,50,000, being both losses
  2. BRs 3,00,000, being the business loss only
  3. CRs 1,50,000, being the house property loss onlyCorrect
  4. DNil, because both losses are lost on late filing

Explanation

The right to carry forward a business loss depends on filing the return by the due date. Because her return was filed late, the business loss of Rs 3,00,000 cannot be carried forward. Loss from house property can still be carried forward even if the return is late. So only Rs 1,50,000 is carried forward.

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