An NRI regularly files his IT Returns as he has some rental Incomes in India.
He has a accumulated Carried forward losses in respect of House Property Rs. 5,25,000/- (as per Last filled ITR)
Now his IT Returns for F.Y 2010-2011 is due.
His Income from H.P for F.Y 2010-2011 is:
Rent Received: Rs. 5,00,000
Deduction u/s 24(a) @ 30% Rs. 1,50,000
GTI: Rs. 3,50,000/-
Ded to be claimed u/s 80C is Rs. 1,00,000/-
Now out of accumulated Losses of Rs. 5,00,000/- we have to claim complete Rs. 3,50,000/-
We can follow some method to ensure that we get maximum out of the accumulated losses in the coming years. Like
Gross Income Rs. 3,50,000/-
Less: deduction u/s 80C Rs. 1,00,000/-
Net Taxable Income will be Rs. 2,50,000/-
Less: Basic Exemption Rs. 1,60,000/-
Net Income which would be taxable Rs. 90,000/-
So its better we claim only Rs. 90,000/- so that Bal Rs. 4,10,000/- is carried forward & utilized in the next years. Will it be legally correct.
Please help in this Unique Situation.