Archive · 4 Oct 2026
Belated ITR Filing Can Limit Carry-Forward of Capital Losses
You can still file an income tax return after the usual deadline.
For AY 2026-27, the final date is 31 December 2026, unless your assessment is completed earlier.
A late return may also mean paying a fee.
The rules for carrying losses into future years depend on what kind of loss you had.
To carry forward a capital loss, you generally needed to file your return by the original due date.
Short-term capital losses can offset either kind of capital gain, but long-term losses can offset only long-term gains.
Eligible house-property losses may still be carried forward for up to eight years even when the return is late.
Filing late does not automatically give every loss the same treatment.
For AY 2026-27, a belated return may be filed by 31 December 2026 or before assessment is completed, whichever comes first.
A late-filing fee under Section 234F may be ₹1,000 when total income is no more than ₹5 lakh and ₹5,000 in other cases.
To carry forward short-term or long-term capital losses, the return for the year the loss arose must have been filed by the Section 139(1) due date.
Short-term capital losses can be set off against short- or long-term capital gains, while long-term capital losses can be set off only against long-term capital gains.
Eligible house-property losses can be carried forward for up to eight years even if the return is filed late.
- Who
- Taxpayers who missed the applicable ITR filing deadline for AY 2026-27.
- What
- Rules on filing a belated return, late fees, and carrying forward different types of losses.
- When
- A belated return may be filed by 31 December 2026 or before assessment is completed, whichever is earlier.
- Where
- Under Indian income tax rules.
- Why
- Late filing can affect whether losses, especially capital losses, may be carried forward to later assessment years.
- Belated return deadline
- 31 December 2026 or before completion of assessment, whichever is earlier
- Late-filing fee
- ₹1,000 if total income does not exceed ₹5 lakh; ₹5,000 in other cases
- Capital-loss carry-forward condition
- The return for the year the loss arose must have been filed by the original Section 139(1) due date
- Short-term capital loss set-off
- May be set off against short-term and long-term capital gains
- Long-term capital loss set-off
- May be set off only against long-term capital gains
- Capital-loss carry-forward period
- Up to eight assessment years, subject to timely filing
- House-property loss
- Eligible loss may be carried forward for up to eight years even if the return is filed after the original due date