Answer

1. F

   Facts

   Losses can be carried forward only from a valid return filed on time. If the defect is fixed within the allowed time, the return stays valid from its original date and the loss can be carried forward.

2. P

   Provisions and law

   • Sec 139(9), Income-tax Act 1961 (now Sec 263(7), Income-tax Act 2025)The Assessing Officer can treat a return as defective, give 15 days (or more on request) to fix it, and treat it as invalid if not fixed.
   • Sec 80, Income-tax Act 1961 (now Sec 121, Income-tax Act 2025)Loss is carried forward only if the return for that year was filed within the due date.
   • Sec 72, Income-tax Act 1961 (now Sec 112, Income-tax Act 2025)Business loss carried forward up to eight years against business income.
3. A

   Analysis

   Say you filed on time with a ₹4,50,000 business loss and got a defect for missing balance sheet details. If you fix it in time, the loss survives and will show in Schedule CFL of later years. If you let the return become invalid, a later belated return will not let you carry the business loss forward. That is a large cost for a small fix, so prioritise this response.

4. C

   Conclusion

   1. 1Fix the defect in the original form and keep the loss figure supported by books.
   2. 2Upload within 15 days, or ask for an extension early.
   3. 3After processing, check that the loss appears in the intimation.
   4. 4Carry the loss into Schedule CFL of later returns.

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