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

Mohit, a resident non-audit individual, filed his return for tax year 2026-27 on 30 November 2027, after the 31 July 2027 due date. After set-off within the year, his unabsorbed losses are a loss of ₹1,20,000 from house property and a speculative business loss of ₹80,000. Which loss can he carry forward to future years?

Only the house property loss of ₹1,20,000 can be carried forward. House property loss is allowed to be carried forward even with a belated return, whereas a speculative business loss needs a return filed by the due date. Because Mohit filed late, the ₹80,000 business loss cannot be carried forward.

  1. ABoth losses, since the return was filed before 31 December
  2. BOnly the house property loss of ₹1,20,000Correct
  3. COnly the speculative business loss of ₹80,000
  4. DNeither loss, since the return was filed late

Explanation

Loss from house property can be carried forward even if the return is filed after the due date. Business losses, including speculative business loss, can be carried forward only if the return of loss is furnished by the due date. Mohit filed on 30 November 2027, which is late, so the speculative loss of ₹80,000 lapses and only the ₹1,20,000 house property loss is carried forward. Filing before 31 December does not rescue a business loss.

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