Find
From 1 March 2026, an updated return may reduce a loss, provided the original loss return was filed on time. This helps correct an overstated loss before it is carried forward.
ITR
Using an updated return to reduce a loss
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Provisions
Sec 139(8A), Income-tax Act 1961 (now Sec 263(6), Income-tax Act 2025); Sec 72, Income-tax Act 1961 (now Sec 112, Income-tax Act 2025); Sec 80, Income-tax Act 1961 (now Sec 121, Income-tax Act 2025)
Analysis
Say your return showed a ₹5 lakh loss but the real loss was ₹3 lakh. An updated return can reduce the loss to ₹3 lakh. If you already set off the excess loss in later years, those years may now show tax payable and need updated returns too. Work out the chain before filing.
Close
- Compute the correct loss.
- Check which later years used the loss.
- File the updated return for the loss year.
- File updated returns for later years where tax increases.
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