Missed filing your ITR? File a Belated Return before 31st May 2021 and get a refund for the excess tax credit. Note: Due to Covid 19, the due date to file Belated/Revised ITR for FY 2019-20 (AY 2020-21) is extended from 31st March 2021 to 31st May 2021.
In case you have any queries regarding filing the Belated/Revised ITR, feel free to drop them below and we will be happy to help!
Budget 2021 Update:
According to Budget 2021, the due date to file a belated/revised return is proposed to be brought done by 3 months. So now the due date to file belated/revised ITR will be December 31 instead of March 31 of the assessment year
To understand more about Revised return, please refer to this article
Yes, ITR is mandatory to file when you had done transactions in the respective financial year. If there are losses, you don’t have to pay Income Tax, but transactions have to be reported in ITR.
Speculative Business Losses can be carried forward for 4 years and Non-Speculative Business Losses and Capital Gains Loss can be carried forward for 8 years.
There is an exchange of data between the broker and the ITD. Even if you do not show in ITR, the ITD has a watch on the transactions. You might receive a notice from the ITD for the discrepancy between data with ITD and reported data in ITR. This may result in penalties.
Hello, So if I file a revised return, I’ll be eligible to carry forwarding losses. When can i set them off. and also if are any other benefits I am not aware off?
I am new to filing returns hence such basic questions.
Carry forwarded losses can save you from paying heavy taxes in the future. For eg. If you fall in the 30% tax bracket, for every profit you make in the derivative market, 30% is the tax rate. Instead, if you have carry-forward losses from previous years, you have to pay tax only on the balance amount after the set-off of losses.
Yes, losses can be carried forward for a specific period as mentioned in the Income Tax Act, in case you have filed an original return within the due date.
@Nireka@Ridhima_Sharma
I filed my return within the due date and received a correction request from the IT department for a transaction I missed showing. Upon filing a revised return on March 31, 2022, I received a notice today that I cannot carry forward the current year’s loss. I already showed the losses in the original first return and showed the same in revised ITR too. Sharing exact notice wordings below:
Particulars: In Schedule Part B-TI, Taxpayer cannot carry forward current year loss except House Property loss if return is filed after the due date allowed u/s 139(1)
Please advise, I’ve to submit a response to this query
If you have filed the original ITR u/s 139(1) before the due date, there is nothing to worry. You can carry forward the loss even if the ITR was revised. This looks like an error from the end of income tax department. They have sent system-generated notices to many taxpayers with the same query. You should submit a response to the tax notice from your account on the income tax website requesting them to re-process the ITR and allowing carry forward of loss since the original ITR u/s 139(1) was filed within the due date.
