Regarding rectification return

I have filed income tax return for the AY 2016-17 my GTI is 3,13,456.00 which includes STCG is 65000 & LTCG is 40611 & House property loss is 57862.00 and have other income. Total income is 2,78,600.00 as per software House property loss is first set of with LTCG and then STCG but as per CPC order house property loss is  first set of with STCG and then LTCG and raised a demand by IT department. So I want to know that which process is correct

If I file rectification return can I decrease my income which I shown in original return while filing rectification return
 
Replies (8)
You can revise your return
You can revise your 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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YOU CAN REVISE

Dhrajlal ji said is correct

Please refer the section for the said concern.

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