Mr. Shitij has earned the following incomes and incurred losses for the previous year 2024-25: Particulars Amount (₹) Income from Salary 3,40,000…

Computation of total Income of Mr. Shitij for the A.Y. 2025-26 under default tax regime Particulars Amount (₹) Amount (₹) Income from Salary 3,40,000 Income from house property Loss from let out property 75,000 Self-occupied property [Interest u/s 24(b) is not allowed in case of self-occupied property since Mr. Shitij is paying tax under default tax regime] - Loss from house property is not allowed to be set off against any other head of income under default tax regime and it cannot be carried forward 75,000 - Profit and gains from business or profession Profit and gains from manufacturing business 96,000 Add: Additional depreciation not allowable in case of section 115BAC 4,000 1,00,000 Less: Brought forward loss from manufacturing business 35,000 Less: Unabsorbed normal depreciation 10,000 55,000 Capital Gains Long term capital gains on sale of house property 1,40,000 Less: Long term capital loss on sale of shares on which STT is paid can also be set-off as per section 74(1), since long-term capital gain arising on sale of such shares is taxable under section 112A (1,15,000) 25,000 Income from Other Sources Winnings from lottery tickets [As per section 58, no expenditure is allowed against winnings from lottery tickets] 40,000 Gross Total Income 4,60,000 Losses to be carried forward to A.Y. 2026-27 Particulars Amount (₹) Loss from the activity of owning and maintaining the race horses 50,000 [As per section 74A(3), loss from the activity of owning and maintaining the race horses cannot be set-off against income from any source other than the activity of owning and maintaining race horse.]