Section 139(3): File Loss Income Tax Return [AY 2018-19]

| 2 years ago


A man or a woman is not required to file income tax return (ITR) if his income from all the five heads is within the maximum non-taxable limit. [Rs. 2.5 lakh for persons below 60 years]

The limit is after the deduction of losses but before providing chapter VI-A  deduction [80C to 80U].

Normally losses are eligible for carry forward up to next 8 years. This loss can be used to reduce the tax liability during the carry forward period. [Unabsorbed losses]

To take the benefit of carry forward, a taxpayer needs to file IT return within the due dates. [139(1)]

Further, a revised return with loss is also a valid return for carry forward. [139(5)]

In this article, we will cover the tax law for loss return filing as given under Section 139(3)


Loss Return Provision under Section 139(3)

A person should file the tax return within the due date to carry forward the following losses:

  1. Loss under any Business or Profession
  2. Loss on sale of capital assets [Both Long term and short term]

Loss from house property is eligible for carry forward even if the tax return is filed after the due dates.

Set off of business and the capital loss is possible in late income tax return also. [139(4)]


Due Date for Return Filing [AY 2018-19] 

Following are the due dates for individuals:

Return of Due Date of Return Filing
An Individual, who should file Tax Audit 30th September 2018
A working partner of a firm, where the firm is covered under Tax Audit 30th September 2018
Any Individual who is not covered above
(Most of us fall under this)
31st July 2018



Outstanding unabsorbed losses of the earlier year will continue to carry forward even if the tax return is late.


Frequently Asked Question [FAQ] 

Question Answer
I have salary income and also have intraday trading losses. How can I carry forward this loss in income tax return (ITR)? It’s a Speculative Business loss [use ITR 3]
This Loss can be carried for next 4 years If the return is filed within due dates.
Do I have to file a tax return before 31st July 2018 if my income is below Rs 2.5 lakhs and a loss from the share market? I recommend filing the tax return before the due date to carry forward loss.
This carry forward loss will help in reducing future tax liability.
can I show my agricultural loss in my tax return? No
You can’t show because a
tax exemption is already given to agricultural income.


Happy filing!

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