Short-term capital loss is allowed to be set off against both long-term and short-term capital gains.
Salary in Form 16 is annual salary, 26AS shows salary on which TDS paid
* Tax deducted from salary has been filled in TDS 1 but my gross salary is more than that shown in 26AS. What should I show in the column ‘income from salary’ – the amount in Form 16 or as shown in 26 AS?
Form 26AS should match with Part A of Form 16 which contains detail of tax deducted. Assuming you are talking about Part B of Form 16 which contains details of total salary paid during the financial year, it may happen that the amount of salary in Form 16 is higher than that in 26AS as your employer may not have reported entries for those months in which no TDS was deducted. Hence, corrective action may not be required unless the difference is due to an error. However, if salary in 26AS is higher than that in Form 16, ask your employer to rectify it.
* In case of a home loan how do I enter the principal amount while filing returns?
Repayment of principal amount of home loan is to be clubbed with other deductions under Section 80C in Schedule VI-A.
* Do I have to pay any tax on income from agriculture land?
Income from agriculture is exempt under income tax. However, while computing the tax on total income, it has to be included as per a certain formula due to which the other incomes are taxed at somewhat higher rate though agricultural income per se remains exempt. If total income of a person includes agriculture income more than Rs 5,000 and total income other than net agriculture income is more than basic exemption limit (i.e. Rs 2,50,000), then income will be calculated as below :
—Compute tax on total income (including agriculture income as if it is taxable)
— Now, add agriculture income to the basic exemption limit and calculate tax on it.
— Deduct the tax calculated in the second step from the tax calculated in first step. The amount arrived at is the tax liability.
— The resultant tax amount shall be further subject to cess and surcharge as applicable.
* Can short-term losses in shares be set off against long-term gains?
Short-term capital loss is allowed to be set off against both long-term and short-term capital gains. Further, if the loss arising from the short term capital gain cannot be set off in the same year, then such capital loss can be carried forward to the next eight years.
-The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to fepersonal firstname.lastname@example.org