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.
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1. |
Dividend |
20,000 |
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2. |
Loss from House property |
32,000 |
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3. |
Interest from bank deposits |
10,000 |
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4. |
Business Income |
50,000 |
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5. |
Loss in speculative business |
3,000 |
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6. |
Short term capital loss |
10,000 |
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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
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1. |
Dividend |
|
20,000 |
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2. |
Loss from House property- to be set off |
32,000 |
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3. |
Interest from bank deposits |
|
10,000 |
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4. |
Business Income |
|
50,000 |
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5. |
Loss in speculative business- C/F |
3,000 |
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6. |
Short term capital loss |
10,000 |
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7. |
Long term capital loss |
15,000 |
5,000 |
STEP 2 INTER –HEAD ADJUSTMENT
Calculation
of Gross Total Income
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1. |
Dividend |
|
20,000 |
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2. |
Business Income |
50,000 |
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3. |
Less: HP income |
32,000 |
18,000 |
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4. |
Interest from bank deposits |
|
10,000 |
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5. |
Capital Gain |
|
5,000 |
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6. |
GROSS
TOTAL INCOME |
|
53,000 |
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CARRY FORWARD LOSS |
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Speculation loss |
3,000 |
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Ex:2 Mr. Sanju , a
resident individual submits the following informations relevant for the P.Y
ending 31-03-2025.
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Rs. |
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1 |
Income from Salary (Computed) |
80,000 |
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2. |
Income from House property(Computed) House 1 House 2 House 3 |
25,000 -35,000 -40,000 |
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3. |
Profit and gains from Business Business 1 Business 2 Business 3 (speculation) Business 4 (speculation) |
30,000 -70,000 -44,000 15,000 |
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4. |
Capital Gains STCL LTCG |
-65,000 17.000 |
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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
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|
Rs. |
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1 |
Income from Salary (Computed) |
|
80,000 |
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2. |
Income from House property(Computed) House 1 House 2 House 3 |
25,000 -35,000 -40,000 |
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|
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To
be adjusted with other heads |
-50,000 |
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3. |
Profit and gains from Business Business 1 Business 2 |
30,000 -70,000 |
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To
be adjusted with other heads |
-40,000 |
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|
Business 3 (speculation) Business 4 (speculation) |
-44,000 15,000 |
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Carry forward(C/F) |
-29,000 |
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4. |
Capital Gains STCL LTCG |
-65,000 17.000 |
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Carry forward(C/F) |
-29,000 |
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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 |
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3. |
Income from other sources Interest on securities Less: Business loss |
30,000 40,000 |
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Carry
forward |
-10,000 |
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4. |
Race winnings Income from card games and betting |
|
45,000 70,000 |
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GROSS TOTAL INCOME |
|
1,45,000 |
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5. |
CARRY FORWARD
Business loss Speculation loss |
10,000 29,000 |
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Ex.3
Mr.Ram Patel submits the following
information relevant for the P.Y ending 31-03-2025.
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|
Rs. |
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1 |
Income from Salary (Computed) |
24,000 |
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2. |
Income from House property(Computed) House A(Income) House B (Loss) House C self –occupied(loss) |
10,000 -40,000 28,000 |
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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 |
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4. |
Short term (gain) Short term(loss) Long term( gain) |
8,000 24,000 8,000 |
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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
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|
|
|
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 |
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To be adjusted with other heads |
-58,000 |
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3. |
Profit and gains from Business Cloth business (profit) Hardware Business(loss) |
10,000 -12,000 |
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To
be adjusted with other heads |
-2000 |
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Speculation- business (profit) Speculation business (loss) |
12,000 -17,000 |
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Carry Forward (C/F) |
-5,000 |
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4. |
Short term (gain) Short term(loss) Long term( gain) |
8,000 -24,000 -8,000 |
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Carry Forward (C/F) |
-24,000 |
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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 |
|
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2. |
Interest on securities |
8,000 |
|
|
|
|
32,000 |
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Less: H P loss to be adjusted |
-58,000 |
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Carry Forward(C/F) |
-26,000 |
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3. 4. |
Income from betting Income from card games |
|
12,000 9,000 |
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5. |
GROSS TOTAL INCOME |
|
21,000 |
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Carry Forward to
next year House property loss Speculation loss Short term capital loss |
26,000 5,000 24,000 |
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