Answer

1. F

   Facts

   A capital or business loss can be carried forward only if the return for the loss year was filed by the Sec 139(1) due date. A belated return keeps the right to report income but not to carry forward such losses. CPC is allowed to make this adjustment.

2. P

   Provisions and law

   • Sec 143(1)(a) (now Sec 270(2))CPC can adjust the return for listed reasons, but must first tell you and consider a reply given within 30 days
   • Sec 80 (now Sec 121)Business and capital losses can be carried forward only if the loss return is filed by the Sec 139(1) due date
   • Sec 74 (now Sec 111)Capital loss carried forward for 8 years; long-term loss only against long-term gains
3. A

   Analysis

   Sec 143(1)(a)(iii) lets CPC disallow a loss claimed in a return filed after the due date. If the loss arose in this belated year, the carry forward is lost under Sec 80 (now Sec 121); if it is an old loss from a year where you filed on time, it can still be set off. So first check which year the loss belongs to and when that return was filed. Where the old year's return was on time, Disagree and give the year, filing date and acknowledgement number.

4. C

   Conclusion

   1. 1Find the year in which the loss first arose.
   2. 2Check the filing date of that year's return against its due date.
   3. 3If that return was on time, Disagree and quote the acknowledgement number.
   4. 4If not, Agree; the loss cannot be revived by a reply.

House property loss is treated differently from capital and business loss; ask before agreeing if your loss is from house property.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.