I am private employee, getting 1.5 lakh per month.To reduce tax burden i would like to buy an agriculture land and to show agriculture loss and to set off against my income from salary.I had no other source of income.
Please suggest how to reduce tax burden with agriculture land.
Thanks in Advance
I hope you are taking full benifits u/s 80C/D/G.
In place of purchasing agricultural land, you can go for a Home Loan. There you will get deductions u/s 24 (Rs.150000 for interest on loan) and also 80C for principal re-payment.
Claiming Agricultural Loss will be a difficult process and departmrnt may create some hurdles for set-off. I thing you must remember that for claiming agricultural Loss/gain you need to pay yearly Agricultural Land Revenue (Lagaan) to claim it as genuine.
Regards
Hello Mr.Bala Ranganath,
Agricultural Income is exempt under section 10(1), income in the sense, it includes loss also, so it cannot be setoff against any other income.
I agree with Mr.Abhinav, because it is time to purchase a residential property to claim deductions under section 80C and 24b and for low interest rate.
Regards
Deepan Chakravarthy.E
Thanks Deepan...This point slipped my mind.
Agriculture income is exempt u/s 10 and loss from the agriculture land can not be set off against any other income.
In my opinion u have to take home loan to reduce your tax liability
CAclubindia
