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Return of Loss - Section 139(3) - Income Tax - Ready Reckoner - Income TaxExtract Return of Loss ( Section 139(3) ) If any person who has sustained a loss in any previous year under the head Profits and gains of business or profession or under the head Capital gains and claims that the loss or any part thereof should be carried forward, then a return of loss in the prescribed form and within the time allowed under section 139(1) . The following losses cannot be carried forward if the return of loss is not submitted in time - Section 80 Business loss u/s 72(1) Speculation business loss u/s 73(2) : Capital loss u/s 74(1) ; and Loss from the activity of owning and maintaining race horses u/s 74A(3) . However, disentitlement to carry forward of loss only comes into play when original return has not been filed within due date (date of revise return is not to be considered). Power to condone delay filing of ITR: As per CBDT circular, Loss can be c/f even if ROI filed after due date and delay in filing of loss return in case of genuine hardship can be condoned in the following manner: Authority Monetary Limit ₹ Return Losses CIT/PCIT upto ₹10 Lakh CCIT/PCCIT ₹10 Lakh upto ₹50 Lakh CBDT ₹50 Lakh Exceptions Unabsorbed depreciation can be carried forward even if the return of loss is submitted after the due date as it is not covered under Chapter VI of set off or carry forward of losses. If an assessee has submitted a return of loss in response to a notice u/s 142(1) such loss cannot be carried forward unless it is a loss under the head income from house property. However unabsorbed depreciation can be carry forward in this case. Although the loss the current year cannot be carried forward unless the return of loss submitted before the due date but the loss of earlier years can be carried forward if the return of loss of that years was submitted within the due dates and such loss has been assessed.
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