The following are the details relating to Mr. Roshan, a resident Indian, relating to the year ended 31.03.2024 Particulars Amount (₹) Short term…

Computation of Taxable Income of Mr. Roshan for the A.Y. 2024-25 under normal provisions of the Act Particulars Particulars ₹ Salaries Shamita's salary (₹ 25,000 x 12) [See Note 1] 3,00,000 Less: Standard deduction under section 16(ia) upto 50,000 50,000 2,50,000 Less: Loss from house property set off against salary income as per section 71(3A) [See Note 2] 2,00,000 50,000 Capital Gains Short term capital gain 1,50,000 Less: Loss from tea business (₹ 1,06,000 x 40%) [See Note 3 & 4] 42,400 1,07,600 Income from Other Sources Dividend income 11,00,000 Taxable Income 12,57,600 The following losses can be carried forward for subsequent assessment years: (i) Loss from house property to be carried forward and set-off against income from house property - 50,000 (ii) Long-term capital loss of A.Y. 2020-21 can be carried forward and set-off against long-term capital gains - 86,000 (iii) Loss from speculative business to be carried forward and set-off against income from speculative business - 50,000 Notes: (1) As per section 64(1)(ii), all the income which arises directly or indirectly, to the spouse of any individual by way of salary, commission, fees or any other form of remuneration from a concern in which such individual has a substantial interest shall be included in the total income of such individual. However, where spouse possesses technical or professional qualification and the income is solely attributable to the application of such knowledge and experience, clubbing provisions will not apply. Since, Mrs. Shamita is not adequately qualified for the post and Mr. Roshan has substantial interest in Ray Ltd by holding 21% of the shares of the Ray Ltd., the salary income of Mrs. Shamita to be included in Mr. Roshan's income. (2) As per section 71(3A), loss from house property can be set off against any other head of income to the extent of 2,00,000 only. (3) 60% of the losses from tea business is treated as agricultural income and therefore exempt under section 10(1). Loss from an exempt source cannot be set off against profits from a taxable source. (4) As per section 71(2A), business loss cannot be set off against salary income. Hence, 40% of the losses from tea business i.e.,42,400 can be set off against short term capital gains or dividend income. (5) Loss from card games can neither be set off against any other income, nor can it be carried forward. (6) Loss of 50,000 from speculative business can be set-off only against the income from the speculative business. Hence, such loss has to be carried forward. (7) As per section 74(1), brought forward long-term capital loss can be set-off only against long-term capital gain. Such loss can be carried forward for eight assessment years immediately succeeding the assessment year for which the loss was first computed. Since, 8 assessment years has not expired, such loss can be carried forward to A.Y. 2025-26 for set-off against long-term capital gains.