Urgent c/f of house loss please

634 views 7 replies

Snehal

Learning Tax

129 Points Joined July 2011

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.

Replies (7)

CA Kumar Mukesh

CA CMA FINAL and Advance Excel Trainer

6886 Points Joined December 2009

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

praveen

Chartered Accountant

6971 Points Joined September 2007

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.

Guest

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

U must opt first approach !

SRIHARIKALYAN

Ca final

30 Points Joined January 2010

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

santhosh kumar

article student

84 Points Joined December 2010

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...