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

Kavita Industries (a proprietary concern of Kavita) has the following items to carry forward from tax year 2026-27: business loss ₹3,00,000; unabsorbed depreciation ₹50,000; loss under the head income from house property ₹1,80,000 (after the permitted set-off for the year); long-term capital loss ₹1,00,000. She files her return on 15 December 2027 for tax year 2026-27, after the due date but within the belated-return limit. What total amount can she carry forward to future tax years?

She can carry forward ₹2,30,000. Because the return is filed late, the business loss and capital loss cannot be carried forward. The house property loss of ₹1,80,000 and unabsorbed depreciation of ₹50,000 survive late filing, giving ₹2,30,000.

  1. A₹2,30,000Correct
  2. B₹1,80,000
  3. C₹5,30,000
  4. D₹3,30,000

Explanation

Business loss and capital loss can be carried forward only if the return is filed by the due date, so both are lost here. Loss from house property and unabsorbed depreciation can still be carried forward despite late filing. Total = 1,80,000 + 50,000 = ₹2,30,000. ₹1,80,000 omits the depreciation, while ₹3,30,000 wrongly includes the capital loss.

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