Mr. Kunal, a resident individual, furnishes the following information of his income and losses for the assessment year 2025-26: Particulars Amount ₹…

(a) Computation of Gross Total Income of Mr. Kunal for the A.Y. 2025-26 as per the default tax regime under the Income-tax Act, 1961 Particulars ₹ ₹ Income under the head "Salaries" Gross Salary 12,00,000 Less: Standard Deduction 75,000 Net Salary 11,25,000 Income from House Property (Let-out Property) Annual Value [Rent received] 8,00,000 Less: Deductions under section 24 - Standard deduction@30% 2,40,000 - Interest on loan of 2,50,000 allowed as deduction 2,50,000 3,10,000 Carry forward and set off of loss from self-occupied house property is not allowed as deduction as per default tax regime under section 115BAC. Profit and gains of business or profession Profit from a food delivery start up business 5,00,000 Profit from business of production of fertilizers 6,00,000 Less: Brought forward losses from specified business is allowed to be set-off against the profits from a specified business only. Thus, losses to the extent of 6,00,000 is allowed assuming that such loss is not on account of deduction under section 35AD. 6,00,000 [Note - If it is assumed that loss from specified business is on account of deduction under section 35AD, the loss is not allowed to be set off as per default tax regime under section 115BAC. In such case, gross total income would be - 27,75,000] Income from Other Sources Income arising from the transfer of 10lakhs to the charitable trust will be included in the hands of Mr. Kunal, since Mr. Kunal can take back the full amount as per his wish and thus, it is a revocable transfer 2,40,000 Gross Total Income 21,75,000 Losses to be carried forward to A.Y. 2026-27 Particulars ₹ Loss from self-occupied property Loss from self-occupied property of P.Y. 2021-22 shall be deemed to have been given full effect and no further deduction of such loss would be allowed for any subsequent year. Business Loss from specified business u/s 35AD 4,00,000 Balance loss from specified business u/s 35AD of F.Y. 2015-16 can be carried forward for indefinite period, assuming the same is not on account of deduction u/s 35AD. Note – If it is assumed that loss from specified business of F.Y. 2015-16 is on account of deduction under section 35AD, then such loss shall be deemed to have been given full effect and no further deduction of such loss would be allowed for any subsequent year.