Mr. Mohan, aged 30 years, submits the information of following transaction/income during the P.Y. 2023-24 (i) Mr. Mohan had a house in Delhi. During…

Computation of Total Income of Mr. Mohan for A.Y. 2024-25 Particulars Amount (₹) Amount (₹) Income from house property House in Delhi [Since Mr. Mohan receives direct or indirect benefit from income arising to his brother's daughter, Ms. Veena, from the transfer of house to her without consideration, such income is to be included in the total income of Mr. Mohan as per proviso to section 62(1), even though the transfer may not be revocable during lifetime of Ms. Veena] Gross Annual Value 1 6,50,000 Less: Municipal taxes - Net Annual Value 6,50,000 Less: Deductions from Net Annual Value (a) 30% of Net Annual Value 1,95,000 (b) Interest on loan - 4,55,000 Profits and gains from business or profession Share of profit from firm [Exempt u/s 10(2A)] Exempt income cannot be clubbed - Capital Gains Long term capital gain from sale of property 15,000 Less: Short-term capital loss can be set-off against both short-term capital gains and long-term capital gains 2 . Short term capital loss of 16,000 set off against long-term capital gains to the extent of 15,000 3 . 15,000 - Income from other sources Dividend on preference shares [Taxable in the hands of Mr. Mohan as per section 60, since he transferred the income, i.e., dividend, without transferring the asset, i.e., preference shares] 10,00,000 Interest from saving bank account 2,00,000 Cash gift [Taxable as per section 56(2)(x), since sum of money exceeding - 50,000 is received from his niece, who is not a relative] 75,000 Income from betting [No loss is allowed to be set off against such income] 34,000 Income from card games [No loss is allowed to be set off against such income] 46,000 13,55,000 Gross Total Income 18,10,000 Less: Deduction under Chapter VI-A Deduction under section 80TTA [Interest from savings bank account] 10,000 10,000 Total Income 18,00,000 Losses to be carried forward to A.Y. 2025-26 Particulars Amount (₹) Short term capital loss [16,000 - 15,000] 1,000 Loss on maintenance of race horses [Loss incurred on maintenance of race horses cannot be set-off against income from any source other than the activity of owning and maintaining race horses. Hence, such loss has to be carried forward to A.Y.2025-26] 14,600 1 Rent receivable has been taken as the gross annual value in the absence of other information 2 as per section 74(1) 3 as per section 74(1)