• Can i adjust short term capital losses of past years?

For last 3 financial years, I incurred short term losses. I have not shown those short term losses of past years in the IT returns i filled. This financial year, i have short term profit. can i adjust last 3 years losses with this year's short term profit?
Asked 11 months ago in Capital Gains Tax from New Delhi, Delhi

You cannot carry forward and set off the losses, unless you file returns or claim such carry forward of losses in the returns filed by you.

B Vijaya Kumar
CA, Hyderabad
865 Answers
61 Consultations

5.0 on 5.0

no you cant adjust those losses which are not carry forward in your ITR, to allow set off of loss if possible revise you ITR if filled within due date and carry forward loss and then adjust the same in with current year profit.

Lalit Bansal
CA, Delhi
566 Answers
37 Consultations

5.0 on 5.0

Hi

No, since the losses have not been shown in returns, they cannot be carried forward and set off is not possible.

Lakshita Bhandari
CA, Mumbai
2254 Answers
81 Consultations

5.0 on 5.0

No loss returns should be filed in time.

B Vijaya Kumar
CA, Hyderabad
865 Answers
61 Consultations

5.0 on 5.0

This is a litigative issue. There have been judicial rulings in favor and in against also.

Lakshita Bhandari
CA, Mumbai
2254 Answers
81 Consultations

5.0 on 5.0

Yes Income tax return can be revise u/s 139(5) if we file the same on or before due date.

time limit for revise is 1 year from the end of relevant Assessment Year.

i.e. if ITR of AY 2016-17 filed on or before 31.07.2016 then it can be revised upto 31st march 2018.

i.e. if ITR of AY 2017-18 filed on or before 31.07.2017 then it can be revised upto 31st march 2019.

Lalit Bansal
CA, Delhi
566 Answers
37 Consultations

5.0 on 5.0

If you have not shown the losses in past years return, then you can't claim set off of losses.

However, if you have filed your returns on time, then you can revise your the returns to show losses. Revised Return of Income Tax can be filed by an assessee any time before the expiry of 1 year from the end of the Relevant Assessment Year or before the completion of assessment (whichever is earlier).

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
162 Consultations

5.0 on 5.0

No, you can not revise the return as the time period has passed. Thus, You can not adjust the profit

Vidya Jain
CA, Kolkata
639 Answers
15 Consultations

4.8 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA