New Delhi, June 17 -- Many investors who suffered losses in equities and mutual funds during the year may assume there is little reason to file an income tax return (ITR), especially if they have no taxable income otherwise.

However, tax experts caution that skipping ITR filing in a loss-making year can have long-term consequences. Investors who fail to file their returns within the prescribed deadline may lose the ability to carry forward those losses and use them to reduce taxes on future gains.

According to Balwant Jain, tax and investment expert, filing an ITR is particularly important when an investor has incurred capital losses and wants to carry them forward for adjustment against future gains.

An individual whose income is belo...