CruxIncome Tax Law and Practice

Income of every kind that is not excluded from total income, and is not taxable as salaries, house property, business or profession, or capital gains, is taxed under income from other sources (s. 92(1), read with s. 13). Test an item against the other four heads first; this head takes what is left. Typical residual items are interest on bank, co-operative bank and post office deposits, interest on loans given to others, interest on an income-tax refund (the refund itself is not income), and rent from a vacant plot or from sub-letting a rented house (house property taxes only an owner, and only on buildings and the land attached to them, s. 20(1)).

The Act also names items that are always taxed here (s. 92(2)), several of them only when they are not business income:

Income here is computed on the cash or mercantile system the assessee regularly follows, subject to any notified income computation and disclosure standards (s. 276(1), (2)), but interest on compensation is taxed in the year it is received (s. 278(1)).

Dividend (s. 2(40)) includes, in each case to the extent the company has accumulated profits:

• a distribution that releases any of the company's assets to its shareholders;
• debentures or deposit certificates distributed to shareholders, and bonus shares issued to preference shareholders;
• a distribution on liquidation or on a reduction of capital;
• a loan or advance by a closely held company to a shareholder who beneficially holds at least 10% of the voting power (fixed-dividend shares do not count), or to a concern in which he is a member or partner and has a substantial interest, or a payment made on his behalf or for his benefit.

Among the exclusions: a loan made in the ordinary course of business by a company for which lending is a substantial part of its business; a later dividend set off against a loan already treated as a dividend, to that extent; and shares a resulting company issues to the demerged company's shareholders in a demerger. From 1 April 2026 a payment for buying back shares is not a dividend either (the Finance Act, 2026, s. 35 omitted s. 2(40)(f)).

A dividend is income of the year in which it is declared, distributed or paid; an interim dividend, of the year in which it is unconditionally made available to the member (s. 7(2)). For a resident, dividends from Indian and foreign companies alike are taxed at the normal slab rates. No deduction at all is allowed against dividends, or against income from units of a mutual fund of Schedule VII (Table: Sl. No. 20 or 21) or of the specified UTI company (s. 93(2), substituted by the Finance Act, 2026, s. 44).

Interest on securities is interest on Central or State Government securities, and on debentures or other securities issued by a local authority, a company or a corporation set up by a Central, State or Provincial Act (s. 2(60)). A reasonable commission paid to a banker or agent for collecting it is deductible (s. 93(1)(a)). Other interest is residual income, against which revenue expenses incurred wholly and exclusively to earn it are deductible (s. 93(1)(e)). The deduction for deposit interest under s. 153 is not taken here; it comes off gross total income (U5).

Take interest gross: where a bank has deducted tax at 10%, the income is the amount credited × 100/90, and the tax deducted is credited against the final tax.

Winnings, often called casual income, come from lotteries and crossword puzzles, from races (horse races too), from card games or any other game, and from gambling or betting of any kind (s. 92(2)(b)). A lottery includes any prize given by draw of lots or by chance under any scheme, and a game includes a television or electronic game show in which people compete for prizes (s. 92(5)(b), (e)).

• Flat rate. Gross winnings are taxed at 30% (s. 194(1), Table: Sl. No. 1), and net winnings from online games likewise, computed as the rules prescribe (Sl. No. 5). The rest of the income is taxed at the normal rates as if the winnings were not there.
• Nothing comes off. No expense or allowance of any kind is allowed against winnings, not even the cost of the ticket (s. 94(4)), so no Chapter VIII deduction is taken from them and no loss is set off against them. The basic exemption limit does not reach them either, since s. 194(1) taxes them at 30% from the first rupee.
• Gross up. A prize paid after tax deducted at 30% is the amount received × 100/70.
• Race horse owners. An owner's income from owning and maintaining race horses is computed in the normal way, with its expenses (s. 94(5)); its losses stay inside that activity (IT11).

When any person receives money or property from any person or persons in a tax year, free or for too little, s. 92(2)(m) taxes it as follows:

Property means these capital assets of the receiver: land or building, shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures, any work of art, bullion and virtual digital assets (s. 92(5)(f)). A car or a phone is outside the rule. The fair market value of property other than land or building is found by the method the rules prescribe (s. 92(5)(c)). Jewellery covers ornaments of gold, silver, platinum or any other precious metal or alloy, with or without stones, and precious or semi-precious stones, whether or not set or sewn into anything (s. 2(22), applied by s. 92(5)(d)).

For land or building (s. 92(4)):

• where the agreement fixing the price and the registration fall on different dates, take the stamp duty value on the date of agreement, if any part of the price was paid by a specified banking or online mode on or before that date;
• if the assessee disputes the stamp duty value, the Assessing Officer may refer the valuation to a Valuation Officer.

When property taxed under this rule is later sold, its cost for capital gains is the value that was taxed here (s. 73, Table: Sl. No. 17).

Exceptions. Nothing is taxed if the money or property is received (s. 92(3)):

1. from a relative;
2. on the occasion of the individual's own marriage (not a birthday or an anniversary), from anyone;
3. under a will or by inheritance;
4. in contemplation of the death of the payer or donor;
5. from a local authority;
6. from or by a registered non-profit organisation, unless the receiver is one of its related persons (s. 355(h)): its founder; anyone who has given it more than ₹1,00,000 in the year or more than ₹10,00,000 in all; a member of the family where the founder or such a giver is an HUF; a trustee or manager; a relative of the founder, of such a family member or of a trustee or manager; or a concern in which any of these, other than the giver, has a substantial interest;
7. through a transaction that is not a transfer under one of the clauses of s. 70(1) that s. 92(3)(g) lists, such as a distribution of assets on the partition of an HUF or a transfer in an amalgamation;
8. by a trust, from an individual, where the trust was created solely for the benefit of that individual's relative;
9. from a class of persons the rules prescribe, on the prescribed conditions.

Relative of an individual (s. 92(5)(g)) means: the spouse; a brother or sister; a brother or sister of the spouse; a brother or sister of either parent; any lineal ascendant or descendant, on the mother's or the father's side; any lineal ascendant or descendant of the spouse; and the spouse of anyone in the second to sixth items. For an HUF, every member is a relative.

Family pension is a regular monthly amount the employer pays to a member of the family of an employee who has died (s. 93(1)(d)). The receiver was never the employer's employee, so it is taxed here, not as salary. Deduct the lower of one-third of the pension and:

• ₹25,000, where tax is computed under the default regime of s. 202(1); or
• ₹15,000, in any other case (the old regime).

Family pension is fully exempt for the family of a government servant awarded the Param Vir Chakra, Maha Vir Chakra, Vir Chakra or another notified gallantry award (Schedule III, Sl. No. 15), and for the widow, children or nominated heirs of a member of the armed forces (paramilitary forces included) who dies on operational duty, on prescribed conditions (Sl. No. 16). Arrears of family pension qualify for the relief of s. 157 (U5).

Interest on compensation or on enhanced compensation (for example, for land compulsorily acquired) is taxed in the year of receipt, whatever the accounting method (s. 278(1)), less a flat 50%, with no other deduction (s. 93(1)(f)). From tax year 2026-27 two cases are exempt (Schedule III, Sl. Nos. 38B and 38C, inserted by the Finance Act, 2026, s. 123): interest on compensation awarded by a Motor Accident Claims Tribunal under the Motor Vehicles Act, 1988, for the individual or his legal heir; and, for an individual or HUF, income from an award or agreement for compulsory acquisition of land under the land acquisition Act of 2013, save under one excepted provision of that Act.

Other named items:

• an advance forfeited when negotiations to transfer a capital asset fail (s. 92(2)(h));
• compensation for losing an employment or for a change in its terms (s. 92(2)(j));
• a sum under a Keyman insurance policy, that is, a life policy a person takes on the life of someone who is or was his employee or is or was connected with his business, including such a policy later assigned (Schedule II, Note 1(c)), when it is neither business nor salary income (s. 92(2)(d));
• hire income from machinery, plant or furniture (s. 92(2)(f), (g)), against which insurance, local taxes, current repairs to premises and depreciation are allowed as for a business (s. 93(1)(c)).

Three devices that use securities to shift income or create artificial losses are countered by s. 175 (here interest includes a dividend, s. 175(11)(a)):

• Bond washing. Where an owner sells or transfers securities and later buys them back, or buys similar securities, any interest on them that becomes payable to someone else in between is taxed as the owner's income and not the other person's (s. 175(1)); buying similar securities cannot leave him worse off than buying back the originals (s. 175(2)). A person who had a beneficial interest in securities during the year, and whose dealings leave him with no income from them or with less than day-to-day accrual would give, is taxed on the whole year's income from those securities (s. 175(3)). Neither rule applies if he proves to the Assessing Officer that no tax was avoided, or that the avoidance was exceptional, not systematic, and absent in each of the three preceding years (s. 175(4)).
• Dividend stripping. A person buys securities or units within three months before the record date, receives or is due an exempt dividend or income on them, and sells the securities within three months after that date (units within nine months): the loss on the sale is ignored, up to the dividend or income received or receivable (s. 175(8)).
• Bonus stripping. A person buys securities or units within three months before the record date, receives bonus securities or units free on them, and sells all or any of the original ones within nine months after that date while keeping all or any of the bonus ones: the loss on the sale is ignored and becomes the cost of the bonus securities or units still held (s. 175(9), (10)).

Allowed (s. 93(1)):

Not allowed:

• anything against dividends and named mutual fund income (s. 93(2)) or winnings (s. 94(4));
• capital expenditure, and personal expenses (s. 93(1)(e), s. 94(1)(a));
• interest or salary payable outside India, if no tax has been deducted at source or paid on it (s. 94(1)(b), (c));
• what the business rules disallow, such as 30% of a sum paid to a resident without deducting tax, the excessive part of a payment to a relative or other specified person, and a payment above ₹10,000 a day to one person made otherwise than by a specified banking or online mode (s. 94(2), applying ss. 29, 35(b)(i) and 36).

An expense or loss allowed earlier and later recovered or remitted is taxed in the year of recovery (s. 95, applying s. 38(1) to (4)).

1. List every item at its gross amount, grossing up anything received after tax deducted at source.
2. Take off, item by item, the deduction s. 93 allows; nothing from dividends and winnings.
3. Show exempt receipts (a gift from a relative, an exempt family pension) as nil, with the reason.
4. Show winnings on a separate line: they are part of gross total income but taxed at 30%.

Facts: dividend ₹40,000; interest on Government securities ₹20,000 with collection charges of ₹500; bank interest of ₹36,000 credited after 10% tax deducted; family pension ₹1,20,000 under the old regime; a gift of ₹60,000 from a brother; a lottery prize of ₹70,000 credited after 30% tax deducted.

A person normally pays tax only on his own income. Clubbing means including another person's income in the assessee's total income. These points apply to every case:

• The income keeps its head. Rent stays house property income and interest stays income from other sources; it is computed under that head and then added.
• It is taxed at the slabs of the person whose income it joins.
• The s. 99 cases (spouse, son's wife, minor child, converted HUF property) apply in computing the total income of an individual, and for them income includes a loss (s. 99(5)(d)). A loss from a clubbed source is set off in the assessee's own computation, on the same conditions as income.
• Income that is exempt in the other person's hands adds nothing when clubbed.
• The assessee pays the tax, but the Assessing Officer may serve a notice of demand on the person in whose name the asset stands for the part of the tax that relates to the clubbed income; joint holders are liable jointly and severally (s. 100).

• Income transferred, asset kept (s. 96). Income that reaches another person under a transfer, revocable or not, where the asset producing it is not itself transferred, is the transferor's income.
• Revocable transfer of assets (s. 97(1)). Income arising to any person from a revocable transfer of assets is the transferor's income.

A transfer includes any settlement, trust, covenant, agreement or arrangement. It is revocable if it provides for the re-transfer of any part of the income or assets to the transferor, directly or indirectly, or gives him any right to re-assume power over them, directly or indirectly (s. 98).

The rule of s. 97(1) does not apply if both conditions are met (s. 97(2)):

1. the transfer is by a trust that cannot be revoked during the beneficiary's lifetime, or is any other transfer that cannot be revoked during the transferee's lifetime; and
2. the transferor gets no direct or indirect benefit from the income.

Even then, the income becomes the transferor's as and when the power to revoke arises (s. 97(3)).

Salary, commission, fees or any other remuneration, in cash or kind, that the spouse receives from a concern where the individual holds a substantial interest is included in the individual's income (s. 99(1)(a)(i)).

Substantial interest (s. 99(5)(a)(iii)) exists if, at any time in the tax year:

• in a company, the individual alone or jointly with relatives beneficially owns shares carrying at least 20% of the voting power, leaving out shares with a fixed rate of dividend;
• in any other concern, the individual, alone or with relatives, has a right to at least 20% of its profits.

Here relative has its general meaning (s. 2(94)): husband, wife, brother, sister, or any lineal ascendant or descendant.

Exception. Income solely attributable to the spouse's technical or professional knowledge, experience and technical or professional qualification is not clubbed.

Whose income. It is included with the spouse whose total income, before this inclusion, is greater (s. 99(5)(a)(i)). So if both spouses have a substantial interest in the same concern and both draw remuneration from it, both amounts go to the spouse with the greater income. Once it has been included with one spouse, a later year's income goes to the other spouse only if the Assessing Officer, having given that other spouse an opportunity of being heard, is satisfied that the move is justified (s. 99(5)(a)(ii)).

Income from an asset that an individual transfers, directly or indirectly, to the spouse otherwise than for adequate consideration is the individual's income (s. 99(1)(a)(ii)). Nothing is clubbed where:

• the transfer is for adequate consideration;
• it is made in connection with an agreement to live apart;
• the asset was given before the marriage, as that is not a transfer to a spouse; or
• the income arises after the marriage has ended.

Points that decide most questions:

1. House property. A house so transferred makes the transferor its deemed owner (s. 25(a)); he is taxed on it under house property as his own income.
2. Indirect transfers. In a cross-transfer (A gives an asset to B's wife and B gives one to A's wife), each is an indirect transfer to one's own spouse, so each is clubbed.
3. Changed form. Income from an asset bought with the gifted money, or from a deposit made with it, still arises from the transferred asset and is clubbed; so is a capital gain when the spouse sells the gifted asset.
4. Only the asset's income. If the spouse invests the income earned on the gifted asset, the income from that reinvestment is the spouse's own.
5. Business or firm. If the spouse (or son's wife) invests the asset in a business, or brings it in as capital of a firm, only a proportion is clubbed (s. 99(2), whose cross-reference the Finance Act, 2026, s. 45 corrected to s. 99(1)(a)(ii) or (b)).

• Son's wife (s. 99(1)(b)). Income from assets transferred to the son's wife, directly or indirectly, on or after 1 June 1973, otherwise than for adequate consideration, is the transferor's. The proportional rule of s. 99(2) applies here too.
• Transfer to another person for their benefit (s. 99(1)(d)). Where assets are transferred without adequate consideration to any person or AOP, the income is clubbed so far as it is for the immediate or deferred benefit of the transferor's spouse or son's wife (for the son's wife, only assets transferred on or after 1 June 1973).
• Converted HUF property (s. 99(3)). If an individual makes his own property part of his HUF's property without adequate consideration, whether by impressing it with the family's character, by throwing it into the common stock or by transferring it to the family, the income from it remains his. If the family later partitions it, the income the spouse receives from her share is clubbed as income from an asset transferred to her indirectly. Income so included is left out of the family's or the spouse's income. None of this applies to a conversion on or before 31 December 1969 (s. 99(4)).

All income that arises or accrues, directly or indirectly, to a minor child is included in a parent's income (s. 99(1)(c)), whatever its source and whoever gave the asset: a grandparent, an uncle, the parent, or the child's own savings. A child includes a step-child and an adopted child (s. 2(25)), and a minor married daughter is covered, as the rule makes no exception for her.

Not clubbed (s. 99(1)(c)(i) to (iii)):

1. income from work done by the child;
2. income from an activity that uses the child's skill, talent, specialised knowledge or experience, such as a child actor's fee or a chess prize;
3. all income of a minor child who has a disability of the kind specified in s. 154, that is, a disability as the disability laws named in s. 127 define it (autism, cerebral palsy and multiple disability included).

Income from investing the earnings in items 1 and 2 comes from an asset, so it is clubbed. A child within item 3 stands apart: none of that child's income is clubbed.

Two special cases:

• Minor partner. A minor admitted to the benefits of a partnership counts as a partner (s. 2(74)(a)). His share of the profit of a separately assessed firm is exempt (Schedule III, Sl. No. 2), so it adds nothing; interest on his capital, business income in his hands so far as the firm was allowed it (s. 26(2)(g)), is clubbed.
• House property. A house transferred without adequate consideration to a minor child other than a married daughter makes the transferor its deemed owner (s. 25(a)).

Which parent (s. 99(5)(b)):

• if the parents' marriage subsists, the parent whose total income, before this inclusion, is greater;
• if it does not, the parent who maintains the child in the tax year.

Once it has been included with one parent, a later year's income moves to the other parent only if the Assessing Officer, having given that parent an opportunity of being heard, is satisfied that it should.

₹1,500 a child. The parent may exclude up to ₹1,500 for each minor child whose income is clubbed, or the clubbed income if smaller (Schedule III, Sl. No. 17). The exclusion is lost under the default regime (s. 202(2)(a)(i)).

Clubbing stops when the child attains majority: income arising after that is the child's own, even from the same asset. A minor's loss is clubbed too (s. 99(5)(d)).

Aggregation brings every income of the assessee into one total income: the income under each head, the income of others clubbed with his (IT10), and two further kinds.

Income on which no tax is payable. A member of an AOP or BOI with determinate shares pays no tax on his share of its income (s. 310(1)). But:

• if the AOP was taxed at the normal rates, the share is still included in his total income (s. 101, s. 310(3)(b)) and the tax on it is then deducted at the average rate (s. 190), which raises the rate on his other income;
• if it was taxed at the maximum marginal rate or higher, the share is left out altogether (s. 310(3)(a));
• if no tax is chargeable on the AOP's total income, the share is taxed as part of his income (s. 310(2)).

Deemed income. Each of these is income of the year when the assessee offers no explanation of its nature and source, or the Assessing Officer is not satisfied with the explanation:

• a sum credited in his books (s. 102). For a loan, the lender too must explain it; for a closely held company's share capital or premium, so must the resident shareholder (s. 102(2), (3)); neither extra test applies where the credit stands in the name of a venture capital fund or company (s. 102(4));
• an investment not recorded in his books, or the excess of an investment over the amount recorded (s. 103);
• money, bullion, jewellery, a virtual digital asset or other valuable article he owns but has not recorded, or the excess of its cost over the amount recorded (s. 104);
• expenditure whose source is not explained (s. 105), which is not deductible either.

An amount borrowed or repaid on a hundi or other negotiable instrument, otherwise than by account payee cheque or a mode the Board specifies, is income of the borrower or repayer for that year, and is not taxed again on repayment (s. 106).

No loss, current or brought forward, and no unabsorbed depreciation is set off against undisclosed income brought to tax after a search, a requisition or a survey other than one under s. 253(4) (s. 120).

Set-off means reducing the income of a year by a loss of the same year. It runs in two stages, first inside a head and then across heads.

Inside a head (s. 108):

• Any head other than capital gains. A loss from one source reduces the income of another source under the same head: a loss on one let-out house against the income of another house, or a loss in one business against the profit of another.
• Capital gains. A short-term capital loss may reduce any capital gain, whether short-term or long-term; a long-term capital loss may reduce only a long-term capital gain (s. 108(2)).

The rule gives way to the special bars of sub-topic 4: a speculation loss, for instance, cannot be set off against the profit of an ordinary business.

A loss under any head other than capital gains that is left after the first stage is set off against income under any other head, capital gains included, of the same year (s. 109(1)), with three limits:

1. A loss from business or profession is not set off against salary income (s. 109(1)(a)).
2. A house property loss is set off against other heads only up to ₹2,00,000 for the year; the rest is carried forward (s. 109(1)(b), s. 110).
3. A capital loss is not set off against any other head (s. 109(2)).

A loss is carried forward only so far as it cannot be set off in its own year (ss. 110 to 112), so it cannot be held back for a better year.

Some losses can be set off, now or later, only against income of the same kind:

The terms:

• A speculative transaction is a contract to buy or sell a commodity, shares included, that is settled otherwise than by actual delivery or transfer; hedging contracts of manufacturers, merchants, dealers and investors, jobbing or arbitrage by a member of a stock exchange or forward market, and specified derivative trades are not speculative (s. 66(31)). A business of such transactions is a speculation business, treated as distinct from any other business (s. 26(3)).
• A company whose business includes buying and selling shares of other companies is treated as carrying on a speculation business to that extent, unless its gross total income comes mainly from house property, capital gains or other sources, or its main business is trading in shares, banking or lending (s. 113(5), (6)).
• A specified business is one whose capital expenditure qualifies for the full deduction of s. 46, such as a cold chain, warehousing for farm produce, a hotel of two-star category or above, or a hospital of at least 100 beds.

The bar runs one way: s. 113 restricts only the speculation loss, so an ordinary business loss, current or brought forward, can be set off against speculation profit, while a speculation loss cannot touch ordinary business profit.

Three incomes take no loss at all: winnings from lotteries, races, games and betting (s. 94(4)); income from transferring a virtual digital asset (s. 194(1), Table: Sl. No. 4); and deemed income under ss. 102 to 106 (s. 195(2)). A loss from a source whose income is exempt, such as agricultural income (Schedule II, Sl. No. 1), is ignored: it is not set off against taxable income.

A loss not absorbed in its own year is carried forward and set off in later years only against the income shown below. Each period counts the tax years immediately after the year for which the loss was first computed.

The return condition (s. 121). A loss carried forward under s. 111(1), 112(1), 113(2), 114(2) or 115(2) must have been determined in pursuance of a return furnished under s. 263(1), that is, on or before the due date. A person with a business or capital loss who wants to carry it forward must file by the due date even if he has no taxable income (s. 263(1)(a)(viii)). A house property loss and unabsorbed depreciation are outside s. 121, so a late return does not cost them.

Who may carry it forward (s. 119):

• Only the person who incurred a loss; a successor to a business takes over the loss only on inheritance (s. 119(2)).
• When a partner retires or dies, the firm cannot carry forward the part of the loss proportionate to his share, except so far as his share of the year's profit covers it (s. 119(1)).
• A closely held company whose shareholding changes in the year carries an earlier loss forward only if, on the last day of the year, at least 51% of the voting power is beneficially held by those who held 51% on the last day of the year of the loss. An eligible start-up (s. 140) passes instead if everyone who held its voting shares on the last day of the loss year still holds them on the last day of this year, for losses of its first ten years from incorporation. The test is waived for a change caused by a shareholder's death or a gift to a relative, and in certain insolvency, reorganisation, relocation and disinvestment cases (s. 119(3), (4)).

Read as worded, s. 33(11)(a) allows depreciation (s. 33) only out of the business profits of the year. If those profits, worked out before depreciation, are less than the depreciation due, depreciation is allowed only up to the profits, and not at all if they are a loss. The amount not allowed is unabsorbed depreciation: it is carried to the next year, added to that year's depreciation and treated as allowable then, and so on (s. 33(11)(b)). The Act sets no limit on the years, and the return condition of s. 121 does not apply. When a business loss and unabsorbed depreciation are both brought forward, the loss is set off first (s. 112(3)). Unabsorbed capital expenditure on scientific research is carried forward in the same way (s. 45(7)).

Under the default regime of s. 202(1), total income is computed without setting off (s. 202(2)(b)):

1. a house property loss against any other head; or
2. a brought-forward loss or depreciation, so far as it is attributable to a deduction the regime withdraws (s. 202(2)(a)), such as interest on a self-occupied house or additional depreciation under s. 33(8).

A loss or depreciation shut out in this way is treated as already given full effect, so no later year can use it (s. 202(3)).

For house property this means:

• Self-occupied house. The current interest of s. 22(1)(b) is not allowed (s. 202(2)(a)(v)), so that interest gives no loss.
• Let-out house. The 30% deduction and the full interest remain, so a loss is possible. It may reduce the income of another house property of the same year; the rest lapses, neither set off against other heads nor carried forward.

Work in this order:

1. Compute each head, with clubbed income in its own head and speculation, specified business and race-horse results kept apart.
2. Set off losses within each head (s. 108).
3. Set off what is left against other heads, within the limits (s. 109).
4. Set off brought-forward losses against the matching income of the year, the business loss before unabsorbed depreciation.
5. Add winnings and deemed income in full, with nothing set against them.
6. The total is gross total income; the Chapter VIII deductions follow (U5).

Layout. Mehul (old regime) has, for tax year 2026-27: salary ₹7,20,000; a loss of ₹90,000 on a let-out house; business profit ₹1,30,000; a speculation loss of ₹40,000; a long-term capital gain of ₹60,000 and a short-term capital loss of ₹85,000; a lottery prize of ₹50,000 (gross); and, brought forward within time, a business loss of ₹1,00,000 and a long-term capital loss of ₹20,000.