Query regarding set off of agriculture loss

Dear Agriculture Income is Tax Free Income so whats the benefit to set off the previous loss to ascertain the tax liability where the tax liability on Agriculture income whether Rs. 1 Lac or Rs. 10 Lac is always NIL.

I think there is no need to carry forward Agriculture Loss. Along with this agriculture loss cannot be set off against any other income as Income which is exempt the loss from the same source cannot be set off among others.

As per the basic rules of ITA,1961 the income which s exempt from TAX , the loss of it is not eligible for  SET-OFF

take it easy .

Agricultureal Income is an exempt source. so you can not set off any gain from that exempt source.

am i RIGHT ????

CANT SET OFF AGRICULTURAL LOSS

Hie everyone..

Agriculture loss can be set off and carry forawrd in the next year as to calculate your tax liabilty you need to first consider the agriculture and then deduct the same.

So if an assesee has an agriculture loss in the one year, the same can be forward and set off in the subsequent year.

So Certain points to be remembered;

(a)    Agricultural income is considered for rate purpose while computing tax of Individual/HUF/AOP/BOI/Artificial Judicial Person.

(b)   Losses from agricultural operations could be carried forward and set off with agricultural income of next eight assessment years.

(c)    Agriculture income is computed same as business income

Agricultural icome is exempt from income tax so there is no scope of setting off agricultural income in the subsequent years

Agricultural income is defined u/s 2(1A) and is computed under 3 heads. 

a. Other Sources : THis loss cannot be carried forward

b. PGBP : This loss can be carried forward for 8 years

c. House property. : This loss can be carried forward for 8 years.

Thanks

https://taxbykk.blogspot.com/

Originally posted by : Mohammad Asif
	CANT SET OFF AGRICULTURAL LOSS

right .

Kashif is absolutely right. The agricultural income is exempt but due to it, rate of tax on other incomes will be increased.

I dont not understand the opinion of Mr. Kaushal. Can anybody explain?

well kaushal sir can explain it well..

but i think he is trying to explain the all the treatment of income under the heads which also falls for Agriculture Income / Loss for computation

As per Constitution of India,the central government does not have the power to levy tax on agricutural income,it is the state who can levy tax on it.Following are the extract of Constitution of India :Income tax is levied under Entry No. 82 of List I of Seventh Schedule to Constitution (Union List), which reads,  ‘Tax on income other than agricultural income’. Entry No. 46 of List II of Seventh Schedule to Constitution (State List) reads,  ‘ Taxes on agricultural income ‘.So off late, the department has made a separate arrangement to tax the agricultural income by indirect way. This indirect way is mentioned in the relevant finance act.-First Schedule-Part IV-Rules for Computation of Agricultural Income.i.e. by increasing the slab rate of tax.

To the best of my understanding you should get the set off of the losses in subsequent year for deciding the rate purpose.

Correct me if I am wrong.

Hello friends,

Pls do read section 2(1A) which defines agricultural income, you will understand what I have written.

SInce agricultural income is added for rates purposes therefore set off and carryforward of loss is also applicable - NO 2 DOUBTS ABOUT IT. 

Had it be loss arising from transfer of agriculural land neither it can be set off nor it can be carried forward.

PS : I write after immese research, therefore do trust my opinion.

Thanks

https://taxbykk.blogspot.com/

Thank you Kaushal Sir. I understand what you have said.

Wish you & all CCI members Happy Diwali !!