During the A.Y. 2020-21, Mr. X has a loss of ₹ 5 lakhs under the head “Income from house property” which could not be set off from any other head of income as per the provisions of section 71. The due date for filing return of income u/s 139(1) has already expired and Mr. X forgot to file his return of income within the said due date. However, he filed his belated return of income for alongwith return of income for A.Y. 2021-22, (P.Y. j 2020-21). Determine whether Mr. X can claim the said set-off?
A. No, Mr. X cannot claim set-off of loss of ₹ 5 lakhs during A.Y. 2021-22 as he failed to file his return of income u/s 139(1) for A.Y. 2020-21.
B. Yes, Mr. X can claim set-off of loss of ₹ 2 lakhs, out of ₹ 5 lakhs, from its income from house property during A.Y. 2021 -22, if any, and the balance has to be carried forward.
C. Yes, Mr. X can claim set off a loss of ₹ 5 lakhs during A.Y. 2021-22 from its income from house property, if any, and the balance has to be carried forward.
D. Yes, Mr. X can claim set off of loss of ₹ 2 lakhs, out of ₹ 5 lakhs, from its income from any head during A. Y. 2021-22 and the balance, if any, has to be carried forward.
Answer:C
During the A.Y. 2020-21, Mr. X has a loss of ₹ 5 lakhs under the head “Income from house property” which could not be set off from any other head of income as per the provisions of section 71. The due date for filing return of income u/s 139(1) has already expired and Mr. X forgot to file his return of income within the said due date. However, he filed his belated return of income for alongwith return of income for A.Y. 2021-22, (P.Y. j 2020-21). Determine whether Mr. X can claim the said set-off?
A. No, Mr. X cannot claim set-off of loss of ₹ 5 lakhs during A.Y. 2021-22 as he failed to file his return of income u/s 139(1) for A.Y. 2020-21. B. Yes, Mr. X can claim set-off of loss of ₹ 2 lakhs, out of ₹ 5 lakhs, from its income from house property during A.Y. 2021 -22, if any, and the balance has to be carried forward. C. Yes, Mr. X can claim set off a loss of ₹ 5 lakhs during A.Y. 2021-22 from its income from house property, if any, and the balance has to be carried forward. D. Yes, Mr. X can claim set off of loss of ₹ 2 lakhs, out of ₹ 5 lakhs, from its income from any head during A. Y. 2021-22 and the balance, if any, has to be carried forward.