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CA Intermediate · Taxation · Set-Off or Carry Forward and Set-off of Losses

Meera, a resident individual who has opted out of the concessional tax regime, has salary income of Rs 9,00,000 for tax year 2026-27. She also owns a let-out house property, which shows a loss of Rs 3,10,000 under the head Income from house property. She has no other income or brought-forward losses. What is her gross total income, and how much house property loss is carried forward?

Gross total income is Rs 7,00,000 and Rs 1,10,000 of house property loss is carried forward. Inter-head set-off of house property loss is limited to Rs 2,00,000 in a year. The excess is carried forward for up to eight tax years and set off only against income from house property.

  1. AGTI Rs 5,90,000; nothing carried forward
  2. BGTI Rs 7,00,000; Rs 1,10,000 carried forwardCorrect
  3. CGTI Rs 9,00,000; Rs 3,10,000 carried forward
  4. DGTI Rs 6,90,000; Rs 2,00,000 carried forward

Explanation

Inter-head set-off of a house property loss against other heads is capped at Rs 2,00,000 for the year. GTI is 9,00,000 - 2,00,000 = Rs 7,00,000. The remaining 3,10,000 - 2,00,000 = Rs 1,10,000 is carried forward for up to 8 tax years, to be set off against house property income only. Rs 5,90,000 ignores the cap.

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