• Applicability of benefit of 24(b) while filing income tax returns

I am a professional earning professional income. I have earned LTCG from selling of shares last FY. It amounts to rs.350000/-(rs.3.5 lakhs). I have paid rs.2,00,000/- towards interest payment for the housing loan that i took from a distant relative. My total taxable income (minus any LTCG) is roughly rs.25,00,000/-. I therefore come in the 30% bracket. LTCG tax I expect would be rs.25000/-(3.5L-1.0L=2.5L. Then 2.5L at 10%=25000). But when i tried to avail 24(b) benefit (deduction for the interest paid towards home loan repayment). it seen that the rs.2,00,000/- is getting deducted from the LTCG. What i mean is when i add loan interest repayment, the rs.2,00,000 is getting deducted from the rs.3,50,000/- for LTCG. LTCG thus becomes rs.1,50,000/- and therefore i think my LTCG tax should become rs.5000/-.

My question is.....is it possible to get 24(b) availed wherein rs.2,00,000/- is deducted from total income (ie from my professional income of rs.25,00,000/-). ? 

I do have a CA. But it seems he came across this problem for the first time and is unsure about how this all works. I mean he says, interest repayment is getting deducted from LTCG....because thats how the "system" is autocalculating! He however is unsure as to what would have happened if I did not have any LTCG. He is not aware as to the provisions (if any) that mandates that 24(B) deductions would be made from only LTCG.

I am therefore putting these questions here for clarity.

These are therefore my questions:
1)If there is LTCG and other incomes.....is there any rule as to from which head would the rs.2,00,000/- deduction would be made?
2)In my case, is there any way i could deduct the rs.2,00,000/- from the total income (and not from LTCG)?
3) Atleast in next year is there any way i could use that deduction be deducted from total income and not from LTCG?
Asked 8 months ago in Income Tax

There is no order or priority to setoff loss. You can setoff house property loss with any other income in the same year. In case of carryforward and setoff of loss house property loss can be setoff with house property income.





Vivek Kumar Arora
CA, Delhi
4568 Answers
802 Consultations

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1. No there is no such rule, you amend the priority for set off of losses.

2. Yes, you can set off the Rs. 2,00,000/- from the total income (and not from LTCG)


I hope this answer satisfies your requirements. For a detailed resolution of your query, you can contact us directly at badlaniassociates at Gmail or take a phone consultation.



CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Madhya Pradesh
2603 Answers
16 Consultations

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- Sub section 4 is only for AY 1995-96 & 1996-97. Order of priority is not mentioned in sub-section 1 and 2. In your case sub-section 3A is applicable.

Vivek Kumar Arora
CA, Delhi
4568 Answers
802 Consultations

5.0 on 5.0

There is no rule as such but as per the software it deducts the loss as per the rules defined by income tax department and not available in law and hence if it is a substantial loss you can raise an appeal against your intimation order and fight the case against CIT(A).


You can surpass the system of income tax return prepared by Department.


Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4121 Answers
78 Consultations

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