I have a current year business loss of 5 lakhs, Income from other sources of 3 lakhs and L.T. capital gain @ 20% of 11 lakhs. What I want to do is setoff 5 L(B.L) with 11 L(L.T.C.G) and pay for balance 6 lakhs at 20% rate applicable for C.G. my Tax would be 1,20,000+ 10,000 (3L-2L BEL * 10%) . Whereas when I fill in the details in ITR 4 for AY 2013-14, it sets off B.L with I.O.S first and the balance with L.T.C.G. Hence my LTCG after set off is 9L-2L (B.E.L) and hence by tax is 1,40,000 which is 10,000 more. Please help me to file my returns the tax efficient way.
Would really help if you reply at the earliest.
Set off of loss while filing income tax returns
Shiva Kumar (Chartered Accountant) (39 Points)
30 May 2014