Set off of loss while filing income tax returns

Shiva Kumar (Chartered Accountant) (39 Points)

30 May 2014  

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.