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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Concepts in Taxation

Ms. Kavita Nair, a resident individual, is a salaried employee with the following details for a year: house property loss (self-occupied, interest on housing loan) Rs 1,80,000, salary income Rs 12,00,000 after standard deduction. Under the old regime, and assuming the statutory cap for set-off of house property loss against other heads applies at Rs 2,00,000, what is the income after setting off the house property loss, before Chapter VI-A deductions?

Income after set-off is Rs 10,20,000. The house property loss of Rs 1,80,000 is below the Rs 2,00,000 limit for set-off against other heads, so it is fully deducted from salary income of Rs 12,00,000.

  1. ARs 10,20,000Correct
  2. BRs 10,00,000
  3. CRs 12,00,000
  4. DRs 13,80,000

Explanation

The loss of 1,80,000 is within the Rs 2,00,000 cap, so it can be fully set off against salary. 12,00,000 - 1,80,000 = 10,20,000. Option B applies the cap as if it were the loss amount, and option D adds the loss instead of subtracting it.

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