I am a professional earning professional income. I have earned LTCG from selling of shares last FY. It amounts to rs.350000/-(rs.3.5 lakhs). I have paid rs.2,00,000/- towards interest payment for the housing loan that i took from a distant relative. My total taxable income (minus any LTCG) is roughly rs.25,00,000/-. I therefore come in the 30% bracket. LTCG tax I expect would be rs.25000/-(3.5L-1.0L=2.5L. Then 2.5L at 10%=25000). But when i tried to avail 24(b) benefit (deduction for the interest paid towards home loan repayment). it seen that the rs.2,00,000/- is getting deducted from the LTCG. What i mean is when i add loan interest repayment, the rs.2,00,000 is getting deducted from the rs.3,50,000/- for LTCG. LTCG thus becomes rs.1,50,000/- and therefore i think my LTCG tax should become rs.5000/-.

My question is.....is it possible to get 24(b) availed wherein rs.2,00,000/- is deducted from total income (ie from my professional income of rs.25,00,000/-). ?

I do have a CA. But it seems he came across this problem for the first time and is unsure about how this all works. I mean he says, interest repayment is getting deducted from LTCG....because thats how the "system"(ie the software he is using for IT return filing) is autocalculating! He however is unsure as to what would have happened if I did not have any LTCG. He is not aware as to the provisions (if any) that mandates that 24(B) deductions would be made from only LTCG. Further he assures me that the problem is NOT with the software.

The relevant rule he quoted was this:
Section 71 of the Income Tax Act: Set off of loss from one head against income from another:

(1) Where in respect of any assessment year the net result of the computation under any head of income, other than “Capital gains”, is a loss and the assessee has no income under the head “Capital gains”, he shall, subject to the provisions of this Chapter, be entitled to have the amount of such loss set off against his income, if any, assessable for that assessment year under any other head.

(2) Where in respect of any assessment year, the net result of the computation under any head of income, other than “Capital gains”, is a loss and the assessee has income assessable under the head “Capital gains”, such loss may, subject to the provisions of this Chapter, be set off against his income, if any, assessable for that assessment year under any head of income including the head “Capital gains” (whether relating to short-term capital assets or any other capital assets).

As it can be seen "house property loss" can be set off against any head including CAPITAL GAINS. The rule doesn't mandate any order to set off. It appears as though you are free to choose any head. That being said the "software" is automatically setting it off from CAPITAL GAINS and there is no apparent way visible to redirect the set off from any other head!!!

I am therefore putting these questions here for clarity.

These are therefore my questions:
1)If there is LTCG and other incomes.....is there any rule as to from which head would the rs.2,00,000/- deduction would be made?
2)In my case, is there any way i could deduct the rs.2,00,000/- from the total income (and not from LTCG)?
3) In case your opinion is that house property loss can be set off against ANY HEAD, I must ask you why the software used by my CA is automatically setting off the loss against capital gains rather than allowing me to set it off against other heads? Does any of you have had prior experience of being able to set off house property loss from professional income when the assessee has CAPITAL GAINS?

dear sir, i am small traders in retail business but still gst dept.send me notice with list of 27documents to keep ready for verification.in the name of gst-adt-01
this is gst

Sir,

I have sold goods @ 12% to a customer at Rs. 1000+GST(1120) prior to 18-07-2022. The same Goods was returned on 30-07-2022. But after 18-07-2022 the tax rate changes to 18%. Now as per law I have to take return of goods at Rs. 1180. How can I deal with the situation. Here, suppler have an credit of Rs. 60 on account of ITC (Tax paid Rs. 120- Tax on Return Rs. 180). Please reply Immediately Sir..

Dear All,
Assessee has intra day turn over 6819 and loss therein is Rs. 6/- minor loss only one transaction was done.

Whereas Professional Income exceed basis exemption limit...

I'm confused turnover is below 1 CR but speculative loss is Rs. 6/- total income exceed basis exemption limit... What to do of audit..... Pls suggest, how to show this speculative loss of Rs. 6/- without Audit also without further litigation.

Pls suggest urgently....

Thanks
Laxmi

Dear All

Please provide HRA exemption calculation for GOVT employees

Our Business turnover is up to 1.20 crore in F.y. 2021-22 and cash receipt & payment is less than 5%.
In ITR3 Audit Information what to select Yes / No.
Whether aggregate of all amounts received including amount
received for sales, turnover or gross receipts or on capital account
like capital contributions, loans etc. during the previous year, in
cash & non-a/c payee cheque/DD, does not exceed five per cent of said amount?

I lost 2 lakhs rupees in financial year 2020-21 in F&O trading and to carry forward the losses I filed ITR 3 in the previous year. in financial year 2021 - 22, I did not do any trading and my total income is 2,60,000 in fy 2021- 22 from rent, dividend and interest. Which ITR do I need to file ITR 1 or ITR 2 ?

what is TDS@% charge on SAC 998399 ? and the amount of bill if @2500/- we have only this one bill in this FY22-23

Dear Sir,

Some of the items/goods which were earlier exempt from GST became taxable starting 17 July 2022.

In this connection, please guide regarding following:
(1) We have unsold stock of FG (Finished Goods) which became taxable from 17 July 2022.

(2) We have also unused/un-consumed stock of "Inputs" which goes into making the FG mentioned in Point No. 1 above.

(3) Which input tax credit we can now avail in respect of the above 2 items (FG and Inputs)

(4) We are sure we can take input tax credit in respect of the unused input items (as they will be now used in making taxable products)

(5) We are not sure about the input tax credit for FG.

Thanks.

LLP is having sales of Rs.2.33 Crore
Cash expenses and receipts do not exceed 5% of total expenses and receipts
My question is whether this LLP os liable for tax audit ?