The question (6 marks)
For a tax year Vikram, who has opted out of the special regime, has salary of 900000, a loss of 250000 on a let house property, a profit of 120000 from one business and a loss of 300000 from another, a long-term capital loss of 80000 and a short-term capital gain of 50000. He proposes to set the whole of the business loss against his salary and the capital loss against the capital gain, and asks whether he may. Compute his gross total income and state what is carried forward. (6 marks)
MU Module II, set-off and carry forward of losses; pack ch. 02, problem question.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 2 · Residence, Heads of Income and Computation of Law of Taxation.
Authorities you will need
- Sections 108 and 109, Income-tax Act
- Sections 110 to 115, Income-tax Act
- Sections 121 and 263(1), Income-tax Act
- Section 202(2)(b), Income-tax Act
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.