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

Ms. Kavya Nair, a resident individual, has the following for the year: salary income ₹10,00,000 (after standard deduction), loss from house property (self-occupied, interest on home loan) of ₹1,50,000, and interest income of ₹40,000 from savings. Under the old regime, the maximum set-off of house property loss against other heads in a year is ₹2,00,000. What is her gross total income?

Gross total income is ₹8,90,000. The ₹1,50,000 house property loss is below the ₹2,00,000 annual set-off cap, so it reduces salary and interest income of ₹10,40,000 in full, leaving ₹8,90,000.

  1. A₹10,40,000
  2. B₹8,90,000Correct
  3. C₹8,50,000
  4. D₹9,00,000

Explanation

Loss from house property of ₹1,50,000 is within the ₹2,00,000 set-off limit, so it is fully set off against other heads. Gross total income = 10,00,000 + 40,000 - 1,50,000 = ₹8,90,000. Ignoring the loss gives ₹10,40,000, which is the key mistake.

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