SET OFF EXCERSICE PROBLEMS

 SET OFF EXCERSICE PROBLEMS

Ex:1 Following are the particulars of income of Mr. for the previous year ended 31st March, 2025.

 

 

 

1.

Dividend

20,000

2.

Loss from House property

32,000

3.

Interest from bank deposits

10,000

4.

Business Income

50,000

5.

Loss in speculative business

3,000

6.

Short term capital loss

10,000

7.

Long term capital loss

15,000

Compute the gross total income of Mr.R after setting off the different losses against other income.

Solution

Step 1 :Intra head or Inter –Source Adjustment

 

 

 

 

1.

Dividend

 

20,000

2.

Loss from House property- to be set off

32,000

 

3.

Interest from bank deposits

 

10,000

4.

Business Income

 

50,000

5.

Loss in speculative business- C/F

3,000

 

6.

Short term capital loss

10,000

 

7.

Long term capital loss

15,000

5,000

 

STEP 2 INTER –HEAD ADJUSTMENT

Calculation of Gross Total Income

 

 

 

 

1.

Dividend

 

20,000

2.

Business Income

50,000

 

3.

Less: HP income

32,000

18,000

4.

Interest from bank deposits

 

10,000

5.

Capital Gain

 

5,000

6.

GROSS TOTAL INCOME

 

53,000

 

CARRY FORWARD LOSS

 

 

 

Speculation loss

3,000

 

 

 

 

Ex:2 Mr. Sanju , a resident individual submits the following informations relevant for the P.Y ending 31-03-2025.

 

 

Rs.

1

Income from Salary (Computed)

80,000

2.

Income from House property(Computed)

                          House 1

                          House 2

                          House 3

 

25,000

-35,000

-40,000

3.

Profit and gains from Business

Business 1

Business 2

Business 3 (speculation)

Business 4 (speculation)

 

30,000

-70,000

-44,000

15,000

4.

Capital Gains

STCL

LTCG

 

-65,000

17.000

5.

Income from other sources

Interest on securities

Race winnings

Income from card games and betting

 

30,000

45,000

70,000

Determine the income of Mr. Sanju for A.Y.2025-26.

SOLUTION

STEP 1: INTRA-HEAD OR INTER-SOURCE ADJUSTMENT

 

 

 

Rs.

1

Income from Salary (Computed)

 

80,000

2.

Income from House property(Computed)

                          House 1

                          House 2

                          House 3

 

25,000

-35,000

-40,000

 

 

 

To be adjusted with other heads

-50,000

 

3.

Profit and gains from Business

Business 1

Business 2

 

30,000

-70,000

 

 

 

To be adjusted with other heads

-40,000

 

 

Business 3 (speculation)

Business 4 (speculation)

-44,000

15,000

 

 

Carry forward(C/F)

-29,000

 

4.

Capital Gains

STCL

LTCG

 

-65,000

17.000

 

 

 

Carry forward(C/F)

-29,000

 

5.

Income from other sources

Interest on securities

Race winnings

Income from card games and betting

 

 

30,000

45,000

70,000

 

STEP 2: INTER –HEAD ADJUSTMENT

Calculation of Gross Total Income

 

 

 

Rs.

1

Income from Salary (Computed)

80,000

 

2.

Loss from House property

50,000

 

30,000

3.

Income from other sources

Interest on securities

Less: Business loss

 

30,000

40,000

 

 

 

Carry forward

-10,000

 

 

 

 

 

 

 

 

 

4.

Race winnings

Income from card games and betting

 

45,000

70,000

 

 

GROSS TOTAL INCOME

 

1,45,000

5.

 CARRY FORWARD

Business loss

Speculation loss

 

10,000

29,000

 

 

 

Ex.3 Mr.Ram Patel submits the following information relevant for the P.Y ending 31-03-2025.

 

 

Rs.

1

Income from Salary (Computed)

24,000

2.

Income from House property(Computed)

                         House A(Income)

                         House B (Loss)

                         House C self –occupied(loss)

 

10,000

-40,000

28,000

3.

Profit and gains from Business

Cloth business (profit)

Hardware Business(loss)

Speculation- business (profit)

Speculation business (loss)

 

10,000

12,000

12,000

17,000

4.

Short term (gain)

Short term(loss)

Long term( gain)

8,000

24,000

8,000

5.

Income from other sources

Income from betting

Income from card games

Interest on securities

 

12,000

9,000

8,000

SOLUTION

 

 

 

STEP 1: INTRA –HEAD OR INTER-SOURCE( SAME HEAD ) ADJUSTMENT

 

 

 

Rs.

1

Income from Salary (Computed)

 

24,000

2.

Income from House property(Computed)

                         House A(Income)

                         House B (Loss)

                         House C self –occupied(loss)

 

10,000

-40,000

-28,000

 

 

 

To be adjusted with other heads

-58,000

 

3.

Profit and gains from Business

Cloth business (profit)

Hardware Business(loss)

 

10,000

-12,000

 

 

 

To be adjusted with other heads

-2000

 

 

Speculation- business (profit)

Speculation business (loss)

12,000

-17,000

 

 

Carry Forward (C/F)

-5,000

 

4.

Short term (gain)

Short term(loss)

Long term( gain)

8,000

-24,000

-8,000

 

 

Carry Forward (C/F)

-24,000

 

5.

Income from other sources

Income from betting

Income from card games

Interest on securities

 

 

12,000

9,000

8,000

 

STEP 2: INTER-HEAD ADJUSTMENT

Calculation of Gross Total Income

 

 

 

Rs.

1

Income from Salary (Computed)

24,000

 

2.

Interest on securities

8,000

 

 

 

 

32,000

 

 

Less: H P loss to be adjusted

-58,000

 

 

Carry Forward(C/F)

-26,000

 

3.

4.

Income from betting

Income from card games

 

 

12,000

9,000

 

5.

GROSS TOTAL INCOME

 

21,000

 

Carry Forward to next year

House property loss

Speculation loss

Short term capital loss

 

26,000

5,000

24,000

 

 

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