Itr - 2 set off calculation problem

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Bipin M

Software Engineer

23 Points Posted on 24 August 2019

Dear Experts,

I am facing a problem with ITR Utility - both excel and java versions. Issue: House Property(HP) set-off from previous years is possible only when income from HP is positive and does not allow upto exemption limit of Rs -2,00,000. I think this is a bug, please let me know if my understanding is wrong.

Step 1: Enter details in Schedule HP of either Java(PR 3.2) or Excel utility (PR 3.1)

Step 2: Enter HP loss from earlier years in Schedule CFL

Step 3: Check Schedule CYLA, the loss is set off correctly

Step 4: Check Schedule BFLA, the loss from previous year is not set off as expected

Expectation is that Rs 29,912 from previous year is set off for current year and the remaining Rs 5,434 is carried forward, so that total allowed HP exemption of Rs 2,00,000 is possible. Please let me know if my calculation/expectation is correct.

Further, I checked that set off is possible only when income from HP is positive, in which case set-off works until amount becomes 0. This is correct in case of Short/Long term capital gains but not in case of HP. HP must allow set-off until -2,00,000. Please see screenshots for the same.

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121531 Points Posted on 25 August 2019

'House Property(HP) set-off from previous years is possible only when income from HP is positive and does not allow upto exemption limit of Rs -2,00,000.'

CORRECT.........

'I think this is a bug,'

Bipin M

Software Engineer

23 Points Posted on 25 August 2019

Thank you for the valuable comments. I seem to have missed this line in the ITR instructions

Please enter the aggregate of losses brought forward from earlier years under the heads of house property, business loss, capital loss, loss from horse races and unabsorbed depreciation or allowance, if any, to the extent such brought forward losses etc. are permitted to be set-off against remaining positive incomes under various heads for the current year, as per the Schedule BFLA.