(i) Which are all persons required to mandatorily file the Return of Loss as per section 80 of Income Tax Act, 1961. (ii) Consequences of Non-filing…

(a) First Alternative (i) As per section 80, a person having the following losses is required to mandatorily file return of loss u/s 139 (3) on or before the due date specified u/s 139 (1) for the purpose of carry forward of such losses: (a) Business loss u/s 72 (1) (b) Speculation business loss u/s 73 (2) (c) Loss from specified business u/s 73A (2) [In case assessee has exercised the option of shifting out of the default tax regime provided under section 115BAC(1A)] (d) Loss under the head "Capital Gains" u/s 74 (1) (e) Loss from the activity of owning and maintaining race horses u/s 74A (3) . (ii) If the return of loss is not filed within the time allowed u/s 139 (1) then, the following losses cannot be carried forward – (a) Business loss u/s 72 (1) (b) Speculation business loss u/s 73 (2) (c) Loss from specified business u/s 73A (2) [In case assessee has exercised the option of shifting out of the default tax regime provided under section 115BAC(1A)] (d) Loss under the head "Capital Gains” u/s 74 (1) (e) Loss from the activity of owning and maintaining race horses u/s 74A (3) (b) Second Alternative (i) A belated return is a return which is not furnished within the time allowed under section 139 (1) but furnished at any time - (i) before three months prior to the end of the relevant assessment year (i.e., 31.12.2024 for P.Y. 2023-24); or (ii) before the completion of the assessment, whichever is earlier. (ii) The provisions of updated return would not apply, if the updated return of such person for that assessment year – (i) is a loss return; or (ii) has the effect of decreasing the total tax liability (iii) results in refund or increases the refund due