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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.
ITR
Loss return marked defective and loss at risk
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Provisions
Sec 139(9), Income-tax Act 1961 (now Sec 263(7), Income-tax Act 2025); Sec 80, Income-tax Act 1961 (now Sec 121, Income-tax Act 2025); Sec 72, Income-tax Act 1961 (now Sec 112, Income-tax Act 2025)
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.
Close
- Fix the defect in the original form and keep the loss figure supported by books.
- Upload within 15 days, or ask for an extension early.
- After processing, check that the loss appears in the intimation.
- Carry the loss into Schedule CFL of later returns.
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