A taxpayer filing ITR-2 for Financial Year 2025-26 (Assessment Year 2026-7) has sought clarity on capital loss treatment from an inherited property sale. According to reports, the taxpayer sold a residential house in Delhi originally purchased in 1967 that was gifted to him in 1982. The property was sold on November 28, 2025, for ₹39 lakh. For calculating capital gains, the taxpayer used the fair market value of ₹13.06 lakh as on April 1, 2001, based on a valuation certificate from an approved valuer.
As reported, the income tax utility accepted the purchase date as April 1, 2001, and calculated the indexed cost of acquisition at around ₹49.13 lakh. Based on this calculation, the transaction resulted in a long-term capital loss of approximately ₹10.13 lakh. However, the taxpayer claimed that while filing the return, the system considered the unindexed cost of ₹13.06 lakh for calculating taxable capital gains and displayed a long-term capital gain of ₹25.93 lakh. The taxpayer also noted that the loss did not appear in the Schedule CYLA, BFLA or CFL sections of the ITR utility.
According to CA Abhishek Soni, CEO & Co-founder of Tax2win, the taxpayer may be eligible to carry forward the loss if the computation is correct and other conditions are met. As reported, Soni stated that the taxpayer is entitled to a long-term capital loss of approximately ₹10,13,124, assuming no other adjustments are affecting the computation. He noted that if there are no capital gains against which this loss can be set off during the year, the loss should be eligible for carry forward and should appear in Schedule CFL, provided the return is filed within the due date. The expert emphasized that proper documentation of gold purchase prices is essential to reduce tax liability legally, as it costs nothing and saves thousands when selling.
Despite not having taxable income, retirees should continue filing ITR-2 when they have income from shares, mutual funds, immovable property, multiple house properties, foreign assets or foreign income. As per Grant Thornton Bharat, regular ITR filing creates continuity in tax records that proves valuable for loans, visas, and inheritance-related tax benefits. The filing helps recover excess tax deducted by banks on fixed deposit interest and preserves the right to carry forward capital losses from investments. Even for senior citizens with income below taxable limits, filing ensures they don't inadvertently forgo deductions or exemptions they're entitled to claim. Many senior citizens continue to earn interest income, incur significant medical expenses or receive a pension alongside investment income, and an annual return provides the opportunity to claim these benefits correctly while reviewing whether the old or new tax regime is more tax-efficient.
