Compute the gross total income of Mr. Neeraj under normal provisions of the Act and show the items eligible for carry forward and the assessment…

Computation of Gross total income of Mr. Neeraj for the A.Y.2025-26 under normal provisions of the Act Particulars Particulars ₹ Salaries Income from Salary 4,18,000 Less: Set off of loss from house property against salary to the extent of 2lakhs (2,00,000) 2,18,000 Profits and gains of business or profession Income from trading business 2,80,000 Less: Brought forward loss from trading business of A.Y. 2020-21 can be set off against current year income from trading business, since the eight-year time limit as specified under section 72(3), within which set-off is permitted, has not expired. (12,000) Less: Unabsorbed depreciation (1,00,000) 1,68,000 Income from speculative business XYZ 25,000 Less: Set off of loss from speculative business PQR (12,000) 13,000 Less: Brought forward loss from speculative business PQR from A.Y. 2021-22 can be set off to the extent of 13,000. Balance loss will be lapsed since four years has expired. (13,000) - Capital Gains Long term capital gain on sale of urban land 2,05,000 Less: Set off of Long term capital loss on sale of shares (STT not paid) (85,000) Less: Long-term capital loss on sale of listed equity shares on which STT is paid can also be set-off, since long-term capital arising on sale of such shares is taxable under section 112A (1,10,000) Less: Set off of Short-term capital loss under section 111A (10,000) - Gross Total Income 3,86,000 Items eligible for carried forward to A.Y.2026-27 Particulars ₹ Loss from house property 20,000 As per section 71B, balance loss not set-off can be carried forward to the next year for set-off against income from house property of that year. It can be carried forward for a maximum of eight assessment years i.e., upto A.Y. 2033-34, in this case. Loss from specified business under section 35AD 45,000 Loss from specified business under section 35AD can be set-off only against profits of any other specified business. If loss cannot be so set-off, the same has to be carried forward to the subsequent year for set off against income from specified business, if any, in that year. As per section 73A(2), such loss can be carried forward indefinitely for set-off against profits of any specified business. Short-term capital loss under section 111A 75,000 Short-term capital loss under section 111A can be set-off against long term or short term capital gains. If it cannot be so set-off, it has to be carried forward to the next year for set-off against capital gains, if any, in that year. It can be carried forward for a maximum of eight assessment years, i.e., upto A.Y. 2033-34, in this case, as specified under section 74(1).