**(a) Computation of Total Income of Mr. Sanju for A.Y. 2025-26 under the optional tax regime:**
| Head of Income / Particulars | Working | Amount (`) | Amount (`) |
| --- | --- | --- | --- |
| **I. Income from Salaries** | | | |
| Salary (computed) | | 3,15,000 | |
| Salary received by wife from M/s XL & Co. | Not clubbed u/s 64(1)(ii) since Sanju's share of profit in the firm is 19% (less than 20% threshold for substantial interest) | Nil | 3,15,000 |
| **II. Income from House Property** | | | |
| Self-occupied property | NAV is Nil. Less: Interest on loan paid u/s 24(b): `1,75,000`. HP Loss is `(1,75,000)` | (1,75,000) | (1,75,000) |
| *Net Salary after setting off HP Loss* | HP loss set off against salary up to maximum of `2,00,000` | | **1,40,000** |
| **III. Profits and Gains of Business or Profession** | | | |
| Profit from restaurant business | | 2,21,000 | |
| Share of profit in M/s XL & Co. | Exempt u/s 10(2A) | Nil | |
| Less: Loss from Future & Option | F&O is non-speculative business loss, allowed to set off against business profits | (75,000) | **1,46,000** |
| *(Note: Speculative loss)* | Brought forward speculative loss of `26,000` can only set off against speculative profits. Hence, to be carried forward. | | |
| **IV. Capital Gains** | | | |
| Short-term capital gain | `82,000` Less: Brought forward short-term capital loss: `52,000` | 30,000 | |
| Long-term capital gain u/s 112A | `1,10,000` Less: Long-term capital loss u/s 112: `68,000` | 42,000 | **72,000** |
| **Gross Total Income** | | | **3,58,000** |
| Less: Deductions under Chapter VI-A | | | |
| - Section 80C | Principal repayment of housing loan | 1,20,000 | |
| - Section 80D | Medical insurance premium `21,000` + preventive health check-up `9,000` (restricted to `5,000`). Total restricted to overall limit of `25,000` | 25,000 | (1,45,000) |
| **Total Income** | | | **2,13,000** |
**Losses eligible to be carried forward to A.Y. 2026-27:**
- Speculative business loss: **` 26,000** (allowed to be carried forward for up to 4 years, can only be set off against speculative business profits).
**(b) First Alternative (PAN Application u/s 139A(1)):**
The following persons are required to apply for allotment of PAN:
1. Every person whose total income (or income of another person for which they are assessable) exceeds the maximum amount not chargeable to tax. *Time limit: On or before 31st May of the Assessment Year.*
2. Every person carrying on business or profession whose total sales, turnover, or gross receipts exceed or are likely to exceed `5 lakhs` in any previous year. *Time limit: Before the end of that Financial Year.*
3. Every resident other than an individual who enters into a financial transaction of an aggregate value of `2,50,000` or more in a FY. *Time limit: On or before 31st May of the immediately following FY.*
4. Every managing director, director, partner, trustee, author, founder, karta, CEO, principal officer or office bearer of any person referred to in (3) above. *Time limit: On or before 31st May of the immediately following FY.*
5. Any person who intends to deposit cash >= `20 lakhs` (aggregate) in one or more bank accounts/post office accounts in a FY. *Time limit: At least 7 days before the deposit.*
6. Any person who intends to withdraw cash >= `20 lakhs` (aggregate) from one or more bank accounts/post office accounts in a FY. *Time limit: At least 7 days before the withdrawal.*
7. Any person who intends to open a current account or cash credit account with a bank or post office. *Time limit: At least 7 days before opening the account.*
**(b) Second Alternative (Quoting Aadhaar Number u/s 139AA):**
Quoting Aadhaar Number is mandatory in:
1. Application for allotment of Permanent Account Number (PAN).
2. The return of income.
Provisions of Section 139AA do not apply to an individual who does not possess Aadhaar and is:
(i) Residing in the States of Assam, Jammu & Kashmir, and Meghalaya.
(ii) A non-resident as per the Income-tax Act, 1961.
(iii) Of the age of 80 years or more at any time during the previous year.
(iv) Not a citizen of India.