Regarding rectification return

As per my suggestion-

In this case, if you are not claiming any deduction then the amount of demand raised by department would be approx 4,200 INR.

But there is no as such provision under income tax act that the loss from house property can be set off first from STCG and then from LTCG or vice-versa.

So, you need to clarify the same with assessing officer. And the tax payer can claim such benefit.

Thanks & Regards

Diamond Goyal

Actually loss on House property is first sett-off against other income heads and not capital gains. In your case, after adjustment of the loss when the net income fall short of basic limit, first short term capital gain is reduced by that amount. Thus calculation of CPC seems to be correct. I don't think any more chance of reducing tax demand.

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Dhrajlal ji said is correct

Please refer the section for the said concern.