Set off of loss from house property

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Querist : Anonymous

Querist : Anonymous (Querist)

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?

ALKESH T MEHTA

ALKESH T MEHTA (Expert)

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%.

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Sagar R Baheti

Sagar R Baheti (Expert)

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.

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Querist : Anonymous

Querist : Anonymous (Querist)

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

Sagar R Baheti

Sagar R Baheti (Expert)

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.

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