The ITR utility has appropriately set off the loss prior to granting exemption beneath 112A.
By Chirag Nangia
For FY 2019-20, I paid about Rs 9.5 lakh to SBI Cards but in my 26AS, the sum shown is Rs 15.16 lakh beneath head SFT-006. How do I get it corrected? —Dhanesh Malik Payments created by any particular person aggre-gating to Rs 1 lakh or more in money or Rs 10 lakh or more by any other mode, against bills raised in respect of one particular or more credit cards issued to that particular person, in a economic year are reported as Specified Financial Transactions (SFTs) by credit card issuer. These SFTs are reflected in Form 26AS. For mismatch among the quantity paid and the quantity reported by the bank, ask the bank to reconcile the similar and rectify it. Once revised figure is reflected in Form 26AS, you may perhaps file ITR.
In EI Schedule of ITR which quantity is to be disclosed and the similar is exempt beneath which section of IT Act? —Manish Mehta In ITR, Schedule-EI includes information of earnings not chargeable to tax, i.e., exempt earnings. Here you shall disclose any interest earnings which is totally exempt, any dividend earnings from any domestic corporation (not exceeding Rs 10 lakh), which is exempt beneath Section 10(34). Agricultural earnings, earnings exempt beneath Section 10 or any earnings not chargeable to tax as per provisions of Double Taxation Avoidance Agreement of India with one more nation is also to be disclosed in this schedule. Apart from this, any other earnings exempt beneath any provision of the Act may perhaps be disclosed in the EI Schedule, providing precise description.
I have lengthy-term capital loss(LTCL) on sale of flat. I want to carry the loss forward for eight years and adjust it against capital gains later. This year, I had lengthy-term capital get (LTCG) of Rs 80,000 on sale of shares. But earnings tax utility has adjusted this Rs 80,000 against my loss on flat and did not give advantage of Rs 1 lakh. Is it appropriate? —Abhishek Jain While computing total earnings of an person, very first, inter-head adjustment (set-off) for losses is carried out and then tax prices are applied. Therefore, LTCL from sale of home shall very first be set off against LTCG from sale of shares in the present year. The balance get or loss shall be taxed or carried forward, as the case may perhaps be. In your case, given that LTCL is more than LTCG beneath Section 112A, only net loss shall be carried forward for set-off in subsequent eight years. The ITR utility has appropriately set off the loss prior to granting exemption beneath 112A.
The writer is director, Nangia Andersen Consulting. Send your queries to