19 September 2018
I have incurred a loss from house property(Rs. 97729).My income from salary is Rs.5,15,658, and long-term capital gains Rs.221728. My question is can I first set off the loss from house property against Long-term capital gain so that I can save tax on it or do I first need to adjust the loss against salary only?
20 September 2018
It is better to set off loss from house property,thereby you willbe in the slab of 10% after adjusting loss.Again,long term gain in excess of Rs.100000/-will be considered for income-tax @10%.
20 September 2018
If long term capital gain arised after 31.03.2018 then it is taxable at flat rate of 10%. But if you derived the long term capital gain on sale of equity shares or Mutual Fund upto 31.03.2018 it is still exempt. So you can adjust house property loss with salary income, so you can better tax saving.
21 September 2018
Sir my Long term capital gain taxed at 20% rate, it is related to the year 2016-2017, that's why I have adjusted the house property loss against Capital gain to save tax. But meanwhile I have received the notice under sec 245 in this year. What further action do I need to take please suggest with suitable provisions of Income Tax Laws. Thank you
26 September 2018
There is no specific provision for adjustment of House Property loss. You can adjust it with LTCG which was taxed at 20% for good tax rate. Submit rectification u/s 154 in reply to Notice 143(1) for non adjustment of HP loss with LTCG.