Mr. Joshi, resident Indian, aged about 58 years, furnished the following details of his income for the previous year 2023-24: (i) Income from House…

Computation of total income of Mr. Joshi for the A.Y.2024-25 Particulars ₹ Income from house property 2,00,000 Less: Set-off of brought forward loss from house property of A.Y. 2021-22 is allowed, since 8 years period not yet lapsed 2,00,000 Nil Profits and gains from business or profession Income from proprietary business 3,00,000 Less: Set off of brought forward business loss of A.Y. 2013-14 not allowable as 8 years' time has already lapsed in the A.Y. 2021-22 Nil Less: Set off of unabsorbed depreciation of A.Y. 2014-15 1,00,000 2,00,000 [Note – Alternatively, unabsorbed depreciation can be set-off against short-term capital gains] Capital Gains Short-term capital gain on sale of land 2,00,000 Less: Set-off of short-term capital loss on sale of listed equity shares 75,000 1,25,000 Brought forward long-term capital loss is not allowed to be carried forward and set-off, since return of income for the A.Y. 2018-19 was filed after the due date of filing return of income. Income from Other Sources Interest on fixed deposit not includible in the hands of Mr. Joshi since his son is major Nil Gross Total Income 3,25,000 Less: Deduction under Chapter VI-A Nil Total Income 3,25,000 Items eligible for carried forward (i) Loss from speculation business of 40,000 can be set-off against income from speculation business only. Hence, such loss would be carried forward to subsequent assessment year. (ii) Loss from owning and maintenance of race horses - 50,000, can be set-off against income from income from owning and maintenance of race horses only. Thus, such loss would be carried forward to subsequent assessment year. (iii) Brought forward loss from house property can be set off only against income of house property. Hence, remaining loss of 50,000 has to be carried forward to subsequent assessment year.