setoff

This query is : Resolved

N.BALA RANGANATH (Querist)
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19 February 2009 Hi Experts, please clarify my doubt.

I am private employee, getting 1.5 lakh per month. I would like to buy an agriculture land so that i can setoff agriculture loss against my salary income to reduce tax burden.I had no other source of income.Please suggest me how to setoff agriculture loss against salary income.

Thanks in Advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 February 2009 The law does not permit for such a set off. Pl refer section 71(2A) of the income-tax act,1961.

Sreedhar Atchutuni ACA,GradCWA

Sreedhar Atchutuni ACA,GradCWA (Expert)
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19 February 2009 Where income from a particular source is exempt from tax loss from such a source cannot be setoff against income chargeable from tax. since agricultural income is exempt under section 10 agricultural loss can not be set off against salary income.

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