Answer

1. F

   Facts

   ITR-1 does not allow brought forward or carried forward losses. You need ITR-2 or ITR-3 to set off or carry forward losses.

2. P

   Provisions and law

   • Rule 12, Income-tax Rules 1962 (now Rule 164, Income-tax Rules 2026)Prescribes the ITR forms and who must use which form.
   • Sec 74, Income-tax Act 1961 (now Sec 111, Income-tax Act 2025)Capital loss carried forward up to eight years.
3. A

   Analysis

   Even if your current income is only salary, a past capital loss needs Schedule CFL in ITR-2 to keep it alive. If you file ITR-1, the loss may lapse from the record. Losses can be carried forward only if each loss year return was filed on time.

4. C

   Conclusion

   1. 1Check last year's Schedule CFL.
   2. 2Use ITR-2 if losses exist.
   3. 3Fill Schedule CFL.
   4. 4File on time.

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