ITR
Updated returns for later years in a loss chain
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
If an updated return reduces a loss or unabsorbed depreciation that was set off in later years, those later years may need updated returns too.
Provisions and law
- Sec 139(8A), Income-tax Act 1961 (now Sec 263(6), Income-tax Act 2025)Updated return within 48 months from the end of the relevant assessment year, once per year, not to reduce tax or raise a refund.
- Sec 72, Income-tax Act 1961 (now Sec 112, Income-tax Act 2025)Carry forward and set off of business losses.
Analysis
Track the loss year by year in Schedule CFL. If a later year set off the excess loss, its tax goes up and it also needs an updated return. Each later year has its own band and rate. Plan and file them together.
Conclusion
- Trace the loss through Schedule CFL.
- Identify later years affected.
- Compute tax for each.
- File updated returns for each year.
A Savvy can do this for you
Updated return, ITR-U, Sec 263(6) (old 139(8A))
₹2,999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.