Surbhi, a resident individual aged 35 years, is a working partner in two firms (A and B) engaged in the retail business of garments. She provides…

(a) Computation of Gross Total Income of Mrs. Surbhi for the A.Y. 2025-26 as per the optional tax regime Particulars Particulars ₹ Income from House Property (Self-occupied Property) Annual Value - Less: Deductions under section 24(b) (30,000) Interest on loan for repair of self-occupied property (Restricted to 30,000) (30,000) Profit and gains of business or profession Remuneration from partnership firm 9,70,000 Share of loss from partnership firm [Not allowed for set-off as it is from exempt source] - Less: Set off of loss from House Property (30,000) 9,40,000 [Alternatively, loss from house property can be set off from advance forfeited.] Capital Gain Long-term capital gain on sale of property 9,20,000 Less: Brought forward long-term capital loss on sale of unlisted shares (3,80,000) 5,40,000 Income from Other Sources Income from owning and maintaining race horse 7,00,000 Less: Brought forward loss of owning and maintaining race horse (25,000) 6,75,000 Advance forfeited as the buyer could not comply with the conditions of the sale agreement 5,00,000 FD received from Father-in-Law [Since Father-in-law falls within the definition of relative, the gift will not be taxable in her hands] - As per section 64(1)(vi), interest on fixed deposit (Since fixed deposit was gifted by father-in law, interest on FD will be clubbed in the hands of Father-in-law) - 11,75,000 Gross Total Income 26,55,000 Losses to be carried forward to A.Y. 2026-27 Loss from speculative business 4,00,000 Loss from speculation business (intra day trading in shares) 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. 2026-27 for set off against income from speculation business of that year. Loss on betting Loss from betting cannot be set off or carried forward for future years. Computation of Gross Total Income of Mrs. Surbhi for the A.Y. 2025-26 as per the default tax regime Particulars Particulars ₹ Gross Total Income as per optional tax regime 26,55,000 Add: Loss from House Property [Interest under section 24 (b) is not allowable in respect of self-occupied house property while computing total income as per section 115BAC] 30,000 Gross Total Income as per default tax regime 26,85,000