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CA Intermediate · Taxation · Set-Off or Carry Forward and Set-off of Losses

Sunita Menon filed her return for tax year 2026-27 after the due date, without having filed it earlier. It shows a loss of Rs 1,20,000 from her business, a loss of Rs 50,000 from a house property and a short-term capital loss of Rs 30,000. Which loss can she still carry forward despite the delay in filing the return?

Only the house property loss can be carried forward. Carry forward of business and capital losses needs the return of loss to be filed within the due date, but the house property loss is exempt from that condition, so a late return does not stop it.

  1. AThe loss from house propertyCorrect
  2. BThe loss from business
  3. CThe short-term capital loss
  4. DNone of the losses can be carried forward

Explanation

The condition of filing the return of loss by the due date applies to business losses (non-speculative and speculative), capital losses and similar carry-forward losses. House property loss is an exception and can be carried forward even if the return is filed late. Hence only the Rs 50,000 house property loss (to the extent not set off) survives.

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