File your Income-tax returns before due date if you have any losses…

The due date for filing your Income-tax returns is fast approaching.

Many think that only if you have Income you need to file your Income-tax returns on time. But the fact is even if you are facing losses, it becomes important to file your returns on time, on or before the statutory due date.

There might be instances your business would have suffered losses during the year or you might have incurred losses in your Shares , Securities & Mutual Fund Trading / Investments. Income-tax Act is giving you a benefit in the form of carry forward of losses to the subsequent year and adjust the same against your profits incurred in the forthcoming years. This way you can save taxes on the gains you are going to make in the years to come. 

In order to avail this great benefit offered by the Income-tax Department, you need to file your Return of Income on or before the due date prescribed by the Income-tax Act,1961. If you file your Income-tax returns belatedly, you will lose the benefit of carry forward of losses to next year.

Hence ensure you file your Income-tax returns on time & on or before the due dates.

The due dates (Extended) for filing your return of Income for the Financial year 2020-21is as follows :-

Sl. NoNature of Tax filingDue date for filing
1For Salaried Employees, Pensioners, Businessmen who are not covered under mandatory Tax audit, Others having income only from Other sources30th Sept 2021
2For Companies,Business where Compulsory Tax audit is applicable31th Oct 2021(Audit report)30th Nov 2021 (Returns)

The losses can be carried forward as per details below :-

Sl NoNature of LossesNo. of years it can be carried forward
1House Property8
2Speculation Loss4
3Business Loss8
4Short Term / Long Term Capital Gains8

Other Points to be noted :-

  1. Depreciation Loss (Unabsorbed Depreciation) can be set off without any time limits
  2. Business Loss can be set off against the profits of any business or profession in a subsequent year
  3. Capital Loss can be set off against only Capital gains
  4. Long term capital loss can be set off only against Long term capital gains
  5. Short term capital loss can be set off against any capital gains (Short/Long Term)

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