RAJ KUMAR (FINANCE MANAGER) (1393 Points)
04 August 2011HELLO FRIIENDS, IF A PERSON HAS BUSINESS INCOME OF RS. 10,00,000 AND HIS AGRICULTURAL INCOME IS RS. 5,00,000
AND HE PAYS THE INTEREST ON LOAN ON PURCHASE OF AGRICULTURAL LAND RS 50000
NOW FOR CLUBBING PUPOSE I HAVE TO TAKE RS. 4,50,000 AGRICULTURAL INCOME OR RS. 5,00,000.
PLS. TELL ME.
WHAETHER INT ON LOAN IS DEDUCTIBLE FROM AGRICULTURAL INCOME OR NOT.
Sagar Devani
(Corporate and International Taxation)
(1174 Points)
Replied 04 August 2011
I think its Rs.4,50,000/-
CA Vasiullah (Vasi)
(Audit Executive)
(1813 Points)
Replied 05 August 2011
never came across such problem.... but deduction should not be allowed, as i feels...
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 05 August 2011
Hi Raj
For the purpose of partial integration, Net agriculture income should be used.
Here interest of loan is paid for the purpose of earning that agricultural income. so while calculating agriculture income it should be deducted. And Rs 450000 should be clubbed with business income while doing partial integration.
*RENU SINGH *
(✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )
(21627 Points)
Replied 05 August 2011
his agricultural income will be RS.450000 bcz interst is being paid by him and its an eligible expense .
Just like we deduct business expenses in PGBP ....
well its my logic bt still let the expert reply as well ....
Hardik Dave
(IPCC and CS Professional(FINAL) Student)
(15533 Points)
Replied 05 August 2011
Shah Tarun
(Student)
(800 Points)
Replied 05 August 2011
srinivass
(CA Final)
(2466 Points)
Replied 05 August 2011
| Originally posted by : Shah Tarun | ||
 |
"Renu" and "Sanat Kumar" are right,Only net Agricultural income is to be clubbed.. |
 |
Ritu Sedwal
(Chartered Accountant)
(407 Points)
Replied 05 August 2011
Expenses incurred for eg cultivation expenes,seeds,fertilizers etc. in connection with such income shall be deducted from such agricultural receipts as per Rule7 of Income Tax Rules 1962
Vijay
(Adamo Studio)
(2112 Points)
Replied 05 August 2011
If the income does not form part of assesee's total income chargable to tax no deduction is allowed in respect of such income.
But here will be 450000 because agriculture income itself means after deducting all expenses incurred in connection with agriculture activity.
I think its clear now.
Shah Tarun
(Student)
(800 Points)
Replied 05 August 2011
CA Sunil Agarwal
(C.A)
(368 Points)
Replied 05 August 2011
Agriculture income is exemt u/s 10 therefore any expenditure incurred to earn exempted income will not be allowed as deduction.
Agriculture income above Rs. 5000 will be clubbed with other income to find out tax liability .
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