Question

Q4 Discuss the income tax provisions (taking each case individually) in the following cases

for the assessment year 2019-20.

i. Mr. X wants to set off long term capital loss of Rs. 1,50,000 of previous year 2016-17

from his short term capital gain income of Rs. 1,20,000 of the current previous year

2018-19. Discuss the important provisions of Income Tax Act and conditions for set

off and carry forward of capital losses. Advise him whether he can set off the long

term business loss?

ii. Mr. Y is a resident and ordinary resident in the previous year 2018-19. He receives

interest of Rs. 50,000 on German development bonds of Rs. out of which 50% is

received directly in his Indian bank account. Is he liable to pay tax on the entire

interest income? Would your answer be different if his residential status is non-

resident in the previous year?

iii. Mr. Z is a part time director in a private company. Company has provided him a rent

free furnished house in Delhi. Explain the taxability of the house in the hands of Mr.

Z.

iv. Mr. M is a senior citizen. He has agriculture income of Rs. 10,000 and non-agriculture

income of Rs. 6,70,000. He deposited Rs. 50,000 in PPF. Find out his taxable income.
plz help me..... plz solve this question.... ​

Answer 1

Answer:

Long-term capital loss on sale of shares may be set off only against gain arising from any other long-term capital asset. However, short-term capital loss from sale of shares may be set off against gain arising from any other capital asset, whether long term or short term.

Explanation: