In case you suffer a loss of income in a year, it is not necessary to file income tax returns for that year. This is applicable only for individuals. People who are self employed or running a business have to file ITR even in the event of a loss.
If you have suffered a loss in income in a particular year, you are not mandated to file an Income Tax Return (ITR) for that particular assessment year, under Section 139(3) of the Income Tax Act. But this can be done only if the assessee is an individual. Firms, companies and persons involved in business or self-employment have to file an ITR even if they have suffered losses.
If you are incurring a loss and expect the loss to be offset in the future years, then you need to file an Income Tax Return. So if you intend to adjust the profits of the future years against the loss occurred in this year and reduce your tax burden in the next year, it is mandatory for you to file an ITR, or else you won't be allowed to offset the loss and profit.
Under Section 139(3), an Income Tax Return has to be filed in the following circumstances:
It is important to remember that if you have been filing ITR for a few years consistently, it is better to file your return even if your income is below the taxable limit or if you have incurred a loss. This is because the Income Tax department is likely to consider this as an aberration and send you a notice for non-filing of income tax return.
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2025 BankBazaar.com.