The assessee who files his income tax return after the due date mentioned under section 139(1), cannot carry forward the loss. However, if he still files a Belated Return with carry forward loss, he will a receive a notice under section 143(1)(a)(iii) i.e. disallowance of loss claimed in ITR. The assessee should rectify the error of the disallowed loss and file a Revised Return under section 139(5)
- ITR Due Date for FY 2016-17 (AY 2017-18) in case of tax audit: 30th September 2017 extended to 7th November, 2017
- Assessee has incurred loss of Rs.9462 from trading in equity shares
- Assessee filed income tax return on 8th November, 2017. It is thus a Belated Return u/s 139(4)
- The income tax department issues a notice u/s 143(1)(a)(iii) i.e. Disallowance of loss claimed in ITR
- The assessee should file a Revised Return u/s 139(5) after rectifying the error or mistake made in the ITR
Prepare and file Revised Return to remove carry forward loss in Belated Return
- Download Utility
Download the latest java or excel utility of the applicable ITR from income tax e-filing website.
- Open the .XML file
Open the .xml file of the original return in the utility.
- 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
- 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 07/11/17
- Recalculate and Save
Click on ‘Recalculate’ in the top row and then click on ‘Save’ to generate the XML.
- Upload XML
Upload the XML on income tax website to file Revised Return u/s 139(5). Login to your account on income tax portal.
Go to e-File > Income Tax Return, enter the required details, upload the XML and submit.
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.