l If some incomes are not reported in AIS, should I still report them in ITR and pay the tax?—Pramod Saini

Yes, you must report all your income in the ITR, even if it is not reflected in your AIS (Annual Information Statement). AIS is only a reporting tool and may not capture every transaction or income source. As per the law, the responsibility to disclose correct and complete income lies with the taxpayer. Not reporting income just because it is missing from AIS can lead to notices, penalties, or scrutiny later.

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l I am planning to sell a property which I had purchased five years ago and buy a small property from the secondary market. Can I claim capital gains tax exemption by investing in the small property and putting  the rest in NHAI bonds?—Ayush Mishra

A taxpayer selling a long-term residential property may optimise capital gains taxation through reinvestment routes permitted under the Income-tax Act, 2025. Under Section 82, exemption may be claimed if the capital gains are reinvested in a residential house property situated in India. The new property may be purchased either within one year prior to the sale or within two years from the date of transfer. Additionally, Section 85 permits exemption through investment in specified NHAI bonds, provided such investment is made within six months of the property sale.

l How would I report losses from options trading in ITR?—Name withheld

Losses from options trading (F&O) are treated as non-speculative business losses. These should be reported in your ITR (usually ITR-3).

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l How do I set off losses from options trading with gains made from cash market trading?—Name withheld

Losses arising from futures and options (F&O) trading are generally treated as business losses and can be set off against other business income and capital gains. Where losses remain unabsorbed, they may be carried forward for up to eight assessment years, provided the income tax return is filed within the prescribed due date. However, carried-forward business losses can only be adjusted against future business income and not against any other heads of income. Set-off losses can be claimed in the income tax return specifically ITR 3.

The writer is senior partner, Nangia and Company. Send your queries to fepersonalfinance@expressindia.com