Karan Bothra, a resident individual, provides the following details relating to the financial year 2025-26: (i) Short-term capital loss from sale of shares (STT paid): ₹1,20,000 (ii) Long-term capital gain on sale of lan

Computation of Total Income of Mr. Karan Bothra for A.Y. 2026-27 (Opted out of default tax regime u/s 115BAC) Particular Amount (₹) Amount (₹) Income from Capital Gain: Long-term Capital Gain (LTCG) on sale of Land 2,50,000 Less: Short-term Capital Loss (STCL) - Note 1 (1,20,000) Net Taxable Capital Gains 1,30,000 Income from Other Sources: Professional fees received by wife from a Private Limited Company [Not clubbed - Note 4] Nil Minor Daughter's TV Income [Not clubbed - Note 3] Nil Minor Son's Interest Income 80,000 Less: Allowed deduction u/s 10(32) (1,500) 78,500 Net Taxable Other Sources Income 78,500 Gross Total Income/ Total Income 2,08,500 Working Notes: Set-off of Capital Losses (Section 70 & 74): Short-term Capital Loss (STCL) can be set off against both STCG and LTCG. Long-term Capital Loss (LTCL) can only be set off against LTCG. Therefore, the STCL of ₹1,20,000 is fully adjusted against the LTCG of ₹2,50,000. Clubbing of Minor Son's Income [Section 64(1A)]: Income of a minor child (excluding the income arising from special talent / skill) is clubbed with the parent whose total income (excluding the minor's income) is higher. An exemption of ₹1,500 per child is available under Section 10(32). Minor Daughter's Talent Income: Income earned by a minor child through manual work or an activity involving the application of his/her skill, talent, or specialized knowledge (like a TV contract) is not clubbed with the parents' income. It is taxable in the hands of the minor. Clubbing of Spouse's Income [Section 64(1)(ii)]: Remuneration received by a spouse from a concern in which the other spouse has a substantial interest is clubbed unless the spouse possesses technical or professional qualifications. Since Mrs. Sunita Bothra is a qualified company secretary and received "professional fees" implies the use of professional knowledge, and therefore not clubbed in the hands of Mr. Karan.