Mr. Sharma, a resident individual, has provided the following details regarding his incomes and losses for the F.Y. 2025-26: Particulars Amount (₹)…

Computation of the gross total income of Mr. Sharma for the A.Y. 2026-27 Particulars Amount (₹) Amount (₹) Income from Salary (Computed) 27,40,000 Income from house property Income derived from the let-out property situated in Jaipur 5,50,000 Less: Set-off of the loss incurred from the let-out property situated in Agra (3,75,000) Less: Interest under section 24(b) is not allowed for the self-occupied property because Mr. Sharma opted for the tax regime under section 115BAC. - Less: Loss from the let out property in Agra for the A.Y. 2025-26 cannot be set-off against the current year's house property income, since Mr. Sharma paid tax under section 115BAC during the A.Y. 2025-26, and no deduction for such house property loss from that year is permitted in subsequent years. 1,75,000 Profits and gains from business or profession Profits derived from the manufacturing business 36,86,000 Add: Additional depreciation, not allowable under section 115BAC 50,000 37,36,000 Less: Brought forward business loss from the A.Y. 2025-26 (5,35,000) Less: Unabsorbed normal depreciation (2,10,000) 29,91,000 Capital Gains Long-term capital loss from the sale of Tech Corp Inc. equity shares (where STT was paid) can be set-off only against long term capital gains. Therefore, this loss has to be carried forward. - Income from Other Sources Net winnings from online games [35,000/70%] 50,000 Gross Total Income 59,56,000 Losses to be carried forward to the A.Y. 2027-28 Particulars Amount (₹) Brought forward loss from the activity of owning and maintaining racehorses for the A.Y. 2025-26 can be set-off only against income from the same activity. Thus, it has to be carried forward. 1,50,000 Long term capital loss arising from the sale of equity shares of TechCorp Inc. shares on which STT was paid. 1,25,000