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File Revised Return : Loss Disallowed on Filing Belated ITR

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Sakshi Shah

139(5)
143(1)(a)
Income Tax
Income Tax Filing
IT Notice
Last updated on June 29th, 2021

The assessee who files his/her income tax return after the due date mentioned under section 139(1), cannot carry forward the loss. However, if they still file a Belated Return with carry forward loss, they will a receive a notice under disallowed loss claimed in ITR. The assessee should rectify the error of the disallowed loss and file a Revised Return under section 139(5).

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Review Income Tax Notice
Take help of an expert to review income tax notice and submit response on income tax e-filing portal
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Example

Notice sec 143(1)(a)(iii)

Prepare and File Revised Return to Remove Carry Forward Loss in Belated Return

  1. Download Utility

    Firstly, download the latest java or excel utility of the applicable ITR form income tax e-filing website.

  2. Open the .XML file

    Open the .xml file of the original return in the utility.

  3. Tab – Part A General

    Under the tab ‘Part A – General’, move to section ‘Filing Status’. Enter the following details:
    a. Filed u/s – Select 139(5)-Revised Return
    b. If revised/defective/modified enter Receipt No – Enter the Acknowledgement Number of ITR-V of the Original Return
    c. Date of filing original return (DD/MM/YYYY) – Enter the date on which the original return was filed

  4. Schedule CFL

    Under the tab ‘Schedule CFL – Details of Losses to be carried forward to future years’, remove the entry of previous year loss if the ITR for that year is filed after the due date.
    Based on the above notice, remove the entry of loss of AY 2017-18 since ITR was filed on 15/11/17 i.e. after the due date of 07/11/17Notice sec 143(1)(a)(iii) - Edit Schedule CFL

  5. Recalculate and Save

    Click on ‘Recalculate’ in the top row and then click on ‘Save’ to generate the XML.

  6. Upload XML

    Upload the XML on income tax website to file revised return. Login to your account on income tax portal.
    Go to e-File > Income Tax Return, enter the required details, upload the XML and submit.

FAQs

What happens if I don’t respond to my income tax notice?

There is no way to reply after the time limit is over. The link for e-proceedings gets closed. If you do not respond to the notice within the allowed time limit, the income tax department will process the return after making an adjustment of the demand raised with the TDS credit available. They may also issue another notice to pay the outstanding demand.
The assessee can submit a Condonation Request on the income tax portal to borrow time for filing Revised Return. They need to provide a valid reason for delay in filing ITR.

  • Niketa says:

    I happened to overlook an intimation from CPC for the AY 2017-18. The 2 important points are
    – I am eligible for a return of around 1 lakh
    – I have made an error in mentioning my total income

    The intimation was dated May 2018 & I just saw it today.

    What is my best option now?

    • Anushka Shah says:

      Hey Niketa,
      The due date for filing revised ITR for AY 2017-18 has passed. The best option currently will be to login to your Income Tax Account and check for any notice issued by the department. Revised return can be filed in response to the notice, given the condition that the link for e-proceedings is not yet closed.
      Connect with one of experts who could guide you through this process- https://plans.quicko.com/plan_E18E4D

  • Ganesh says:

    I have filed ITR on time on 30 December. However, I want to file revised returns showing the capital loss. I did not file capital loss before.

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