payment of Interest on loan u/s 36(1)(iii)-Is it allowable with respect to exempt income?
MANSHA -CA STUDENT
(Querist) 06 August 2011
This query is : Resolved
Respected Experts
I have one doubt regarding the taxability of agricultural income in partial integration
Payment of intt on loan u/s 36(1)(iii),which is taken for purchase of agricultural land -
whether it is allowed from agricultural lncome or not i.e its attracts disallowances u/s 14 of Income tax act ?
Kindly reply query with ref of income tax act & case laws .
Thanks
soumitra basu
(Expert) 07 August 2011
If the purpose of purchasing agricultural land is for having agricultural income, then section 14 will be attracted. Otherwise not.
MANSHA -CA STUDENT
(Querist) 07 August 2011
Thanks for reply sir
yes ,it is for agricultural land .
Can u give any case reference ?