Urgent c/f of house loss please

Snehal (Learning Tax) (129 Points)

18 August 2011  

An NRI regularly files his IT Returns as he has some rental Incomes in India.

He has a accumulated Carried forward losses in respect of House Property Rs. 5,25,000/- (as per Last filled ITR)

 

 

Now his IT Returns for F.Y 2010-2011 is due.

His Income from H.P for F.Y 2010-2011 is:

Rent Received:                             Rs. 5,00,000

Deduction u/s 24(a) @ 30%         Rs. 1,50,000

GTI: Rs. 3,50,000/-

Ded to be claimed u/s 80C is     Rs. 1,00,000/-

 

 

Now out of accumulated Losses of Rs. 5,00,000/- we have to claim complete Rs. 3,50,000/-

 

 

OR

 

 

We can follow some method to ensure that we get maximum out of the accumulated losses in the coming years. Like

Gross Income                        Rs. 3,50,000/- 

Less: deduction u/s 80C       Rs. 1,00,000/-

Net Taxable Income will be Rs. 2,50,000/-

Less: Basic Exemption           Rs. 1,60,000/-

Net Income which would be taxable Rs. 90,000/-

 

So its better we claim only Rs. 90,000/- so that Bal Rs. 4,10,000/- is carried forward & utilized in the next years. Will it be legally correct.

 

Please help in this Unique Situation.