80 G deduction

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This query is : Resolved

A.Manjunath (Querist)
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17 February 2011
Particulars Amt (Rs.)
Net Taxable Rental Income. 806,298
Net Taxable Business Loss. (2,640,205)
Net Taxable STCG. 957,962
Net Taxble LTCG. 8,962,966

Total Net Taxable Income Rs.8,087,021

We have given donation of Rs. 980,555/- which is eligible deduction u/s 80G.

Can I set off the Business Loss under Long Term Capital Gain and claim
deduction u/s 80G from Taxable Rental income and Short Term Capital Gain?

Warm Regards
CA Manjunath A

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 February 2011 1. In my opinion, you can set off your business loss completely under Section 71 against the LTCG income available to you.
2. You can claim 80G Deduction against STCG and Rental Income. But please carefully check how much deduction you are getting U/s 80G.
3. Unless 80G is not 100% Deductible, it is advisable to forgo the benefit as the slab applicable to remaining income will be 30%
4. Otherwise better you set off your losses first against rental income & STCG. The remaining losses will be set off against LTCG.
5. As you go by manner suggested in para 4, tax liability will be minimum, subject to exceptional donation as mentioned in para 3.

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