Mr. Rakesh furnishes the following details for year ended 31.03.2024: Particulars ₹ Short Term Capital Gain 2,80,000 Loss from Speculative Business…

Computation of Total Income of Mr. Rakesh for the A.Y. 2024-25 Particulars ₹ Income from Salary (computed) 2,00,000 Less: Loss from let-out house property (80,000) 1,20,000 Profit and gains of business or profession Income from textile business 1,00,000 Less: Loss of 1,20,000 from textile business set-off to the extent of 1,00,000 1,00,000 Nil Share of loss from firm - not allowed to be set-off Nil Capital Gain Short term capital gain 2,80,000 Long-term capital gain on sale of land 60,000 Less: Long term capital loss of 2,00,000 on sale of shares set-off to the extent of 60,000 60,000 Nil Balance loss of 1,40,000 to be carried forward to A.Y 2025-26 Gross Total Income 4,00,000 Less: Deduction under Chapter VI-A Under section 80C - Investment in PPF 21,000 Under section 80D - Medical insurance premium for self of 24,000 and preventive health checkup fees for wife of 5,000 restricted to 25,000 46,000 Total Income 3,54,000 Losses to be carried forward to A.Y. 2025-26 Loss from speculative business 1,20,000 Loss from speculation business cannot be set-off against any income other than profit and gains of another speculation business. Such loss can, however, be carried forward to A.Y. 2025-26 as per section 73(4) for set-off against income from speculation business of that year. Long term capital loss on sale of shares 1,40,000 Balance loss cannot be set-off against short term capital gain or against any other head of income. The same has to be carried forward for set-off against long-term capital gain of the subsequent assessment year. Balance brought forward loss of 20,000 from textile business Such business loss cannot be carried forward since business loss can be carried forward for a maximum of eight assessment years immediately succeeding the assessment year for which the loss was first computed and A.Y. 2024-25, is the eighth year.