550
July 13 To July 19, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 24the end of the relevant assessment year or
before completion of assessment, whichever
is earlier. With effect from Assessment Year
2017-18, a belated return can also be revised
if there is any omission or wrong statement
in the return of income.
Q 67. I am a salaried person, drawing House
Rent Allowance (‘HRA’) of ` 2,900 per
month. Do I need to furnish rent receipt to
employer for claiming exemption of HRA?
Though actual expenditure on payment of
rent is a prerequisite for claiming deduction
of HRA, yet as an administrative measure
salaried employees drawing HRA of up to
` 3,000 per month are exempted from pro-
duction of rent receipt to employer.
However, this concession is only for the pur-
pose of tax-deduction at source. In the regular
assessment of the employee, the Assessing
Officer will be free to make such enquiry
as he deems fit for the purpose of satisfying
himself that the employee has incurred actual
expenditure on payment of rent.
Q 68. Whether it is mandatory to furnish
PAN of the landlord to employer for claim-
ing exemption of HRA?
If annual rent paid by the employee exceeds
` 100,000 per annum, it is mandatory for
the employee to report PAN of the landlord
to the employer. In case, the landlord does
not have a PAN, a declaration to this effect
from the landlord along with the name and
address of the landlord should be filed by
the employee.Set-off of losses
Q 69. I am a part time employee and am
also running a provision store. I suffered
loss in business. Can I adjust the business
loss against my salary income?
Loss from business/profession cannot be
adjusted with salary income. Hence, you
cannot adjust the business loss against your
salary income.Q 70. I sold gold after holding it for 13
months and suffered loss thereon. Can I
adjust this loss against my salary income?
Loss on sale of capital asset is termed as capital
loss and capital loss can be adjusted against
capital gains only. Hence, loss on sale of gold
cannot be adjusted against salary income.
Q 71. I have earned salary income of `800,000
during the Assessment Year 2019-20 and am
also having loss of ` 300,000 from house
property. Can I set-off loss from house
property against my salary income?
Section 71 allows set-off of losses from house
property against any other income. However,
w.e.f. Assessment Year 2018-19, losses under
the head ‘house property’ shall be allowed
to be set-off only to the extent of `200,000
in any assessment year. Thus, only loss of
`200,000 can be adjusted against your salary
income and loss of `100,000 shall be carried
forward for set-off in subsequent years.
Q 72. I have long-term capital loss of
` 70,000 from sale of listed equity shares.
Whether same can be allowed to be set off
or carried forward?
Up to Assessment Year 2018-19, any long-
term capital gain arising from transfer of
listed equity shares was fully exempt from
tax under section 10(38). Since the gain was
exempt from tax, any loss arising from such
transfer had no treatment under Income-tax
Act. However, the Finance Act, 2018 withdrew
this exemption by inserting a new Section
112A with effect from Assessment Year 2019-- Tax is levied under this provision at the
concessional rate of 10% on long-term capital
gains arising from transfer of said securities,
if long-term capital gain exceeds1 lakh. The new section 112A provides for taxability of long-term capital gains in excess of1
lakh. As gain up to `1 lakh is not charge-
able to tax, it couldn’t be called as exempt
income. Therefore, any long-term capital loss
arising from sale of listed equity shares is
allowable to be set off and carried forward.
FAQs ON INCOME-TAX RETURNS FOR ASSESSMENT YEAR 2019-20