Urgent c/f of house loss please

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/-

 

 

OR

 

 

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.

 

Replies (7)

firstly you need calculate Gross total Income then afterwords it will be adjusted against carried forward losses then only Deduction are allowed maximum to net income i.e. you must carry your first approach

nice query

but going by the set off carry forward options you will have to set it off wholly against the income earned during this year.
See as per the carry forward mechanism you will have set off the losses of the previous year against this year income under the same head.

Here you donot have the luxury of using the losses 'whenever I want' basis.

Hence you have to claim Rs.350000 only.

As per set off & carry forward provisions u/s 70 to 80 

U must opt first approach  !

You have to set off  losses and thereafter only you can claim deductions under chapter VI .

as far as set of  provisions are concerned there are 2 types of adjustments they are

1. intra head adjustment .

2.inter head adjustment..

while calculating the gross income only these adjustments should be done.......after calculating gross income we have to give deduction u/s 80c to 80u and BEL

so 1st one is correct...

 

Thanks Everyone,

So I Guess his IT Calculations for F.Y 2010-2011 will be as follows:

Rent Received:                             Rs. 5,00,000

Deduction u/s 24(a) @ 30%    Rs. 1,50,000

Income from HP:                        Rs. 3,50,000

Less: C/F Loss adjusted:            Rs. 3,50,000

GTI:                                                           NIL

 

Ded u/s 80C Rs. 1,00,000/- (Cannot be claimed as GTI is NIL)

 

Tax Status Refund to be claimed of TDS on Rent

Partial set off is not allowed. You should adopt first method.

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