For an individual who has opted out of the default new tax regime under the Income-tax Act, 2025,…
Both the auditor's advice in the assertion and the stated Rs.1,00,000 limit are incorrect. Section 109 of the Income-tax Act, 2025 limits inter-head set-off to Rs.2,00,000,…
Choose your answer
For an individual who has opted out of the default new tax regime under the Income-tax Act, 2025, consider the following:
Assertion (A): A person incurred a loss from house property to the tune of Rs.3,00,000. He has sufficient eligible income from several other sources to set-off this loss. But his auditor asked him to carry forward Rs.2,00,000 loss to the next year after setting off one lakh during the year.
Reason (R): Yes, the auditor is right. Loss from house property can be set-off against income under any other head only to the extent of Rs.1,00,000.
Answer and explanation
Correct answer C
Both the auditor's advice in the assertion and the stated Rs.1,00,000 limit are incorrect. Section 109 of the Income-tax Act, 2025 limits inter-head set-off to Rs.2,00,000, leaving Rs.1,00,000 for carry-forward under section 110.
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Telangana SET (TG SET)