Summary of this article
A glitch in the Income Tax Department’s online ITR-2 filing system is causing errors for taxpayers reporting capital gains along with carry-forward losses. The issue affects data entered in Schedule BFLA and Schedule CFL, sometimes showing incorrect totals or zero carry-forward losses without warning. This may lead to reduced refunds or tax notices. The problem does not occur in offline Excel or Java utilities. With no official fix or update yet, taxpayers are advised to file using offline tools and double-check all figures to avoid future complications.
The error happens when data is filled in two parts of the form — Schedule BFLA (Brought Forward Loss Adjustment) and Schedule CFL (Carry Forward of Losses). Even when the correct figures are entered, the final return may not reflect them properly. This happens without any warning during the filing process.
Problem In The Online Form
As a result, the return may show wrong totals or carry-forward losses as zero. This can lead to incorrect processing by the Centralised Processing Centre and may result in a lower refund or a tax notice under Section 143(1).
1 August 2025
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The problem has been seen only in the online form. The Excel and Java-based offline utilities do not appear to have this issue. Taxpayers with capital gains from shares, mutual funds, or property, and who also have old losses being carried forward, are more likely to be affected.
No Public Statement From The Income Tax Department
There has been no public statement from the Income Tax Department about this. Many taxpayers may not realise the mismatch until they receive a notice or see a reduced refund.
People who have already filed using the online form are advised to check their downloaded return. They should compare the loss figures in both the BFLA and CFL sections. In some cases, losses entered correctly are not being carried forward as they should be.
Those who are yet to file may want to use the offline utility to avoid problems. Tax professionals are also choosing the offline route for such cases.
The error comes at a time when return filing is at its peak. Any problem in the form can affect many, especially those with complex returns.
Until the issue is fixed, those filing ITR-2 with capital gains and losses should take extra care. Figures should be checked closely before submission. Copies of workings and older returns should be saved in case a correction is needed later.
No fix or update has been released as of now. The matter remains unresolved.
