Question on declaring loss w.r.t. foriegn income

[blessedsingle99]

Hi folks,

Want to know if there is a provision to declare capital loss on the sale of foreign shares and carry forward to subsequent years. Is this possible at all? If so, under what section should we be declaring such loss and for how many years that loss can be applicable? Wherever I look, I only find info on capital gains and hence the post. Please help me out. Thanks you.

Just to add more details, I am an employee working for a foreign company and received shares in the form of ESPP and RSUs. The company is listed in NASDAQ. I already missed declaring such loss in the previous years and looking to see if we can declare the loss at all. If we can, I'll try to check if it is possible to refile the returns of previous FYs.

 

[resjudicata]

@blessedsingle99 Is assessee resident?

 

[blessedsingle99]

@resjudicata Yes.

 

[resjudicata]

@blessedsingle99 Section 74

 

[blessedsingle99]

@resjudicata Thank you. I'll check more on this. I actually missed declaring such loss in previous FYs. Any idea on my options to refile those returns so that I can declare the loss and carry forward to the present FY?

 

[resjudicata]

@blessedsingle99 You wont be able to revise previous returns... They cut short the time limit for revised returns to end of relevent AY... So you wont be able to revise those previous returns, unless you get called up for assessment by dept.

For current year, show the brought forward loss and set it off against capital gains of current year as per set off rules.

 

[windinmysails]

@blessedsingle99 Yes, you can declare the loss on the sale of foreign shares and carry forward the same if it is not set off against the current year capital gain. The relevant section for this transaction is Sec 74 of the Income Tax Act, 1961. You cannot declare the loss of Previous year in the current year. The only option was to revise the return if you have missed to declare the loss in the original return. Revising the ITR is time bound too.