Introduction:
Agricultural income earned by a taxpayer in India is exempt under Section 10(1) of the Income Tax Act, 1961. Agricultural income is defined under section 2(1A) of the Income-tax Act.
As per section 2(1A), agricultural income generally means (a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes. (b) Any income derived from such land by agriculture operations including processing of agricultural produce so as to render it fit for the market or sale of such produce. (c) Any income attributable to a farm house subject to satisfaction of certain conditions specified in this regard in section 2(1A). Any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income.
Meaning of Agricultural Income:
Section 2 (1A) of the Income Tax Act, 1961 defines “agricultural income” as an income under the following three sources:
(i) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes: The assessee will not be liable to pay tax on the rent or revenue arising from agricultural land subject to the conditions:
(a) The land should either be assessed to land revenue in India or be subject to a local rate assessed and collected by officers of the Government.
(b) In instances where such a land revenue is not assessed or not subject to local rate, the land should not be situated within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name) or a cantonment board, and which has a population of more than ten thousand (according to the last preceding census which has been published before the first day of the previous year in which the sale of land takes place); or it should not be situated:
- more than 2kms. from the local limits of any municipality or cantonment board and which has a population of more than 10,000 but not exceeding 1,00,000; or
- not being more than 6kms. from the local limits of any municipality or cantonment board and which has a population of more than 1,00,000 but not exceeding 10,00,000; or
- not being more than 8kms. from the local limits of any municipality or cantonment board and which has a population of more than 10,00,000.
(c) The revenue must not include any income arising out of transfer of such land.
Further, a direct nexus between the agricultural land and the receipt of income by way of rent or revenue is essential. (For instance, a landlord could receive revenue from a tenant.)
(ii) Any income derived from such land by agricultural operations including processing of agricultural produce, raised or received as rent in kind or any process ordinarily employed by cultivator or receiver of rent-in-kind so as to render it fit for the market, or sale of such produce.
(iii) Any income derived from any building owned and occupied by the assessee, receiving rent or revenue from the land, by carrying out agricultural operations: The building must be on or in the immediate vicinity of the land. It must be used by the assesee as a dwelling house or store-house or an out-building, in connection with the land.
Hence, we can consider income attributable to a farmhouse as an agricultural income, subject to the above conditions. Normally, the annual value of a building is taxable as ‘income from house property’. However, in the case of a farm house, the annual value would be deemed agricultural income and thus, be exempt from tax.
In addition to the above, income derived from saplings or seedlings grown in nursery is also considered as agricultural income.
In order to consider an income as agricultural income, certain points have to be kept in mind:
(i) Existence of a land.
(ii) Usage of land for agricultural operations: Agricultural operations means efforts induced for the crop to sprout out of the land. The ambit of agricultural income covers income from agricultural operations, which includes processes undertaken to make the produce fit for sale in the market. Both, rent or revenue from the agricultural land and income earned by the cultivator or receiver by way of sale of produce are exempt from tax only if agricultural operations are performed on the land.
(iii) Cultivation of Land is a must: Some measure of cultivation is necessary for land to have been used for agricultural purposes. The ambit of agriculture covers all land produce like grain, fruits, tea, coffee, spices, commercial crops, plantations, groves, and grasslands. However, the breeding of livestock, aqua culture, dairy farming, and poultry farming on agricultural land cannot be construed as agricultural operations.
(iv) Ownership of Land is not essential: In the case of rent or revenue, it is essential that the assessee has an interest in the land (as an owner or a mortgagee) to be eligible for tax-free income. However, in the case of agricultural operations, it is not necessary that the cultivator be the owner of the land. He could be a tenant or a sub-tenant. In other words, all tillers of land are agriculturists and enjoy exemption from tax. In certain cases, further processes may be necessary to make a commodity marketable out of agricultural produce. The sales proceeds in such cases are considered agricultural income because the producer’s final objective is to sell his products.
Note:
a. Agricultural income is considered for rate purpose while computing the tax liability for Individual/HUF/AOP/BOI/Artificial Judicial Person.
b. Losses from agricultural operations could be carried forward and set off with agricultural income for the next eight assessment years.
c. Agriculture income is computed in a manner similar to business income.
Exceptions:
a. If a person sells processed produce without carrying out any agricultural or processing operations, the income would not be regarded as agricultural income.
b. Likewise, in cases where the produce is subjected to substantial processing which changes the very nature of the product (for instance, canning of fruits), the entire operation is not considered as an agricultural operation. The profit from the sale of such processed products will have to be apportioned between agricultural income and business income.
c. Income from trees that have been cut and sold as timber is not considered as an agricultural income since there is no active involvement in operations like cultivation and soil treatment.
Tax on sale of agricultural land: Before 1970, profit on the sale or transfer of all agricultural land was considered rent or revenue derived from the land. Such profit was, therefore, tax-exempt as agricultural income. There were several favorable judgments of various High Courts on the issue. However, via a retrospective amendment that took effect from April 1, 1970, land qualifies to be an agricultural land if the prescribed conditions are satisfied. An agricultural land does not form part of the definition of a capital asset and hence, there will be no capital gains on the sale of such land.
Any other land not forming part of the above will be a capital asset and sale of the same shall attract tax on capital gains subject to Section 54B, which is explained below.
Section 54B: Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases
Section 54B gives relief to a taxpayer who sells his agricultural land and acquires another agricultural land from the sale proceeds.
Conditions to be satisfied to claim the benefit of this Section:
a. The assessee must be an individual or a HUF.
b. The agricultural land should have been used for agricultural purposes. It may be a long term asset or a short term asset.
c. It must have been used either by the assessee or his parents for agricultural purposes in atleast two years immediately preceeding the date on which the transfer of land took place.
d. The assessee should have purchased another land, which is being used for agricultural purposes, within a period of two years from the date of sale.
Note: In case of compulsory acquisition, the period of acquisition of new agricultural land will be determined from the date of receipt of compensation. However, as per Section 10 (37), no capital gain would be chargeable to tax in case of an individual or HUF if agricultural land is compulsorily acquired under any law and the consideration of which is approved by the Central Government or RBI and received on or after 01-04-2004.
e. The whole amount of capital gain must be utilised in the purchase of the new agricultural land. If not, the difference between the amount of capital gain and the new asset will be chargeable as capital gains and the tax will be computed accordingly.
f. The new asset purchased should not be sold within a period of three years from the date of acquisition.
g. If sold, the cost of the new asset will be reduced by the amount of capital gain (claimed as exemption under Section 54B) for the purpose of computing tax on capital gains.
h. Where the amount of capital gain is not utilised by the assessee for the purchase of the new asset before the due date of furnishing his return of income, he may deposit it in the Capital Gains Account Scheme (CGAS) of any specified bank.
i. In such a case, the cost of the new asset shall be deemed to be the amount already utilised by the assessee for the purchase of the new asset together with the amount deposited in the CGAS.
j. If the deposited amount is not utilised for the purchase of the new asset within the specified period, then the unutilised amount shall be taxed as income in the year in which the period of two years from the date of sale of the original asset expires.
Taxability of Agricultural income post amendment by Finance (No.2) Act, 2014
Agricultural income is considered for rate purposes while computing the income tax liability, if following two conditions are cumulatively satisfied:
i. Net Agricultural income exceeds Rs. 5,000/- for previous year, and
ii. Total income, excluding net Agricultural income, exceeds the basic exemption limit.
Note: If aggregate agricultural income of the assessee is up to Rs. 5,000/- during FY 2018, then the entire income shall be exempt from tax. Accordingly, you need to disclose the agricultural income in the income tax return (ITR) 1 form to be compliant from the disclosure perspective. But if the agricultural income exceeds Rs.5,000, then form ITR 2 applies, which has a separate column for disclosure of agricultural income.
Once the aforementioned conditions are satisfied then we shall compute the Tax liability in the following manner:
♠ First, include the Agricultural income while computing your income Tax liability.
Example – Let us say that an Individual Assessee has a Total income of INR 7,50,000/- (excluding Agricultural income) and a Net Agricultural income of INR 100,000/-. Then, per this step, Tax shall be computed on INR 7,50,000/- + INR 1,00,000/- = INR 8,50,000/-. Thus, income Tax amount as per this step shall be INR 82500/- for an individual who is below the age of 60 Years during the P.Y. 2017-18.
♠ Second, add the applicable basic tax slab benefit, as applicable, to the Net Agricultural income. Thus, per our example mentioned above we shall add INR 2,50,000/- to INR 1,00,000/- as the applicable Tax slab benefit available to an individual below 60 Years of age is INR 2,50,000/-. Now we will compute income Tax on INR 3,50,000/- (Tax slab benefit 2,50,000 + Net Agricultural income 1,00,000). The amount of Tax shall be INR 5000/-.
♠ Third, subtract the Tax computed in Second step from the Tax computed in First step = INR 77,500/-. Thus, this is the income Tax liability subject to deductions, Education Cess etc., as applicable.
This process of computation is, however, followed only if the assessee’s non-agricultural income is in excess of the basic exemption slab.
Clearly, despite agricultural income being tax-exempt, assessees have to be cautious while dealing with such income. They must make sure that they aggregate agricultural income with their total income to avoid interest payments and possible penalties for concealment of income. Assessees must also maintain credible records to provide the tax authorities with proof of ownership of agricultural land and evidence of having earned agricultural income.
To conclude, there is enough scope for taxing income from activities which are non-agricultural in nature. In fact, it is well known that agriculturists themselves do not have taxable income, taking into account the fact that when it is divided amongst family members who are involved in agricultural operations, each one of them would have income within the exemption limit. However, there are hundreds of thousands of middlemen like wholesalers, retailers, distributors, etc. who earn substantial income from trading in agricultural produce as well as fruits, flowers, etc. Such income or profits are fully taxable under the present law and, therefore, if concerted efforts are made by the Tax Department to recover tax from them, the need for widening the tax base to rope in agriculturists and farmers, would be eliminated.
Tax Saving Tip:
Form a company or a partnership firm for the sole purpose carrying on your agricultural operations. As indirect effect of agricultural income is not applicable in a company or a firm, the complete amount would become exempt from taxation.
Frequently Asked Questions:
1. Does interest on arrears of rent qualify as agricultural income and will this be exempt from tax?
Sometimes, a tenant could slip up on rent or revenue payments (either in cash or kind) and have to pay arrears. If the landlord charges interest on such arrears, the income would not be considered as an agricultural income, but would be deemed income by way of interest and would, hence, be chargeable to tax. While ‘rent’ presupposes periodical and pre-determined payment (either in cash or kind), ‘revenue’ implies a sharing arrangement that depends on the actual agricultural produce. In either case, ownership of agricultural land or interest in such land is essential, which means, the owners of agricultural land, tenants who are given a sub-lease, and people who are mortgagees of agricultural land, all enjoy tax-free agricultural income.
2. If agricultural produce is processed to make it marketable at a place other than the agriculture land, then the amount charged for such processing will be an agricultural income or not?
Any processing done on Agricultural produce to make it marketable is a part of agricultural operations and such amount recovered will be treated as agricultural income only. Say for example trashing of wheat, mustard, etc is part of agricultural operations only and the amount recovered will be treated as agricultural income only no matter processing takes place on the land itself or some other place.
But in certain cases like in the case of tea, coffee, sugarcane where a major processing (change of very nature of the product) is being done, then some part of the processed produce (tea, coffee & sugar) is taxed as non-agricultural income and rest is exempt as agricultural income.
3. What if agriculture operation is carried on urban land?
If agricultural operations are carried out on land, either urban or rural, the income derived from sale of such agricultural produce shall be treated as agricultural income and will be exempt from tax.
4. If any industrial organization grows crops and sells half of the produce as raw material in the market and remaining (further processed) as finished goods, what will be the tax treatment?
Agricultural income is exempt from income tax. It does not matter whether the agricultural operations are done by an industrial organization or an individual. If any industrial organization grows crops and sells half of the produce as raw material in market and remaining (further processed) as finished goods, the income which is earned on the first half of produce (sold in market as raw material) is totally exempt from tax.
In case of the remaining produce which is further processed, scheme of presumptive taxation is applicable. Rule 7, 7A, 7B & 8 of Income tax Rules deals with such type of income. Rule 7A deals with Income from manufacture of rubber, 7B deals with Income from manufacture of coffee and Rule 8 deals with Income from manufacture of tea. Rule 7 says that in cases where income is partially agricultural in nature and partially from business, the market value of the agricultural produce which has been raised by the assessee or received by him as rent in kind and which has been utilised as a raw material, shall be deducted from the sale receipts and will be treated as agriculture income. The remaining will be considered as non agricultural income.
5. In my agriculture farm, I have 5 cows in Pune (Maharashtra). The product being milk is the main produce, and not a byproduct. Is this income an agriculture income or a taxable income? (This milk is sold to dairy product plant in nearest Co-op Society).
Dairy farming is not an agricultural income.
6. Why rent on land is treated as agricultural income?
Rent received from agricultural land used for agricultural purpose is treated as agricultural income. This is prescribed by the law.
7. I have a business income of Rs 3,00,000 and agricultural income of Rs 4,00,000. These figures relate to the Assessment year 2019-20. How will my tax liability be computed?
Agricultural income is exempt under Section 10(1) of the Act so long as the income is derived from agricultural land situated in India. This income is, however, included merely for rate purposes and rebate is allowed on the same in accordance with the Finance Act. The inclusion of Agricultural income for rate purpose is only required if total income( excluding agricultural income) of an individual exceeds Rs. 2,50,000/- (assessee being aged less than 60 years of age).
| Particulars | Amount in Rs. |
| Business Income | 3,00,000/- |
| Agricultural Income | 4,00,000/- |
| Income Including Agricultural Income | 7,00,000 |
| Tax on 7,00,000/- | 52500/- |
| Less: Rebate on Agricultural Income | |
| (Tax on Rs. 4,00,000 + Rs. 2,50,000 being basic exemption) | 42500/- |
| Net Tax Payable | 10,000/- |
| Add: Health & Education Cess @ 4% | 400/- |
| Total tax Payable | 10,400/- |
8. Can Interest on Crop Loan be claimed as an exemption?
The interest earned on Crop Loan cannot be claimed as an exemption by the provider of loan since the condition of ownership of land being not essential holds true only if the assessee has interest in the land. The provider of the loan may not have an interest in the land because it may be his ordinary business to provide Crop Loan. However, the farmer to whom the crop loan is provided can claim the same as a deduction while computing his tax liability.
9. If an assessee sells the fruits of the trees planted by him around his home, will the income so earned be agricultural income?
The trees planted by him should be on a land which can be classified as an agricultural land by fulfilling the conditions mentioned earlier in this article. If the land is agricultural, then the income earned by selling of fruits can be treated as agricultural income.
10. I have taken certain agricultural land on lease and crops are being grown on the said land for many years. Now the said land alongwith growing crops has been acquired by the Govt. The Govt. paid separate compensation for the land and the crop. Whether the compensation received in lieu of crop is agriculture income or not? Further note that assessee has not further invested the amount in agriculture land received as compensation against crop.
The compensation paid for the crops by the Govt. can be considered to be as good as income earned by purchase of standing crop, which is not an agricultural income. Hence the compensation against crop is taxable in the hands of receiver of the compensation.
11. Whether income earned from export of agricultural produce is exempt from income tax?
The conditions for considering the income as agricultural in nature have to be satisfied if the agricultural produce has to be exempt from income tax. Middlemen dealing in trade of agricultural produce are generally not entitled to exemption due to lack of satisfaction of the conditions.
12. I have an income of Rs.1,45,000 from my business and an agricultural income of Rs. 8,40,000. Do I need to file the return of income?
The process of computation of tax liability is followed only if the assessee’s non-agricultural income is in excess of the basic exemption slab. In this case, the income from business of the assessee is lower than the basic exemption limit. However, the returns have to be filed with regards to the disclosure of agricultural income.
13. An assessee wants to buy farms which bear coconut trees, on a lease for a period of one year. State whether sale of coconuts is said to be an agricultural income or not?
The land on which the coconut trees are planted should be an agricultural land which can be classified by fulfilling the conditions mentioned earlier in this article. If the land is agricultural, then the income earned by selling of coconuts can be treated as agricultural income.
14. I had sold an agricultural land in a rural area, which is outside jurisdiction of the Municipal Authority. Whether the sales proceeds are exempt or taxable?
The scope of agricultural income excludes the revenue which is earned by transfer of agricultural land not falling under the definition of Capital assets u/s. 2(14). By definition of a capital asset under Section 2(14), an agricultural land in an area falling out of jurisdiction of the Municipal Authority (which has a population of more than 10,000), is not a capital asset. Section 10(37) allows income from transfer of such a land to be classified as a capital gain via clause (i). Under Section 54B, a capital gain arising out of this transaction will be exempt provided the conditions (mentioned earlier in this article) are satisfied.
15. Is receipt from sale of rubber trees an agricultural income?
Yes, receipt of sale of rubber trees is an agricultural income if the conditions for land being agricultural in nature are satisfied.
(Republished With Amendments)
Author Bio
I want to know that the maxmium agricutural land limit hold by a single person in haryana.
Whether Pvt Ltd company will get exemption from agricultural income. In your article, company is not included and also dividend from company earning agricultural income is not exempt. Is lease deed to be registered in Sub Registrar office of agricultural land for tenant. Is it necessary to prove purchase of seeds, produce, workforce etc
I want know if I buy apple from Shimla and than put on cold starage and aft some time I sale in market and that profit will be tax free or taxble
R/sir
If I sold my agriculture land approximate 45lakh,and this money I draw in bank for fd.can I exempt in tax,please tell me how many years I rebut from tax
I will sale an agricultural land in rural area.
In what way can I get rebate in Income Tax?
Sir,
Please provide the formate of lease agreement for contract farming.
Does Crop Loan Interest has some exemption?
Does Interest on crop loan has some exemption?
Sir, if I sell the fruits of the trees planted by me around my home, will the income so earned be agricultural income? please reply
how much income iexemputed on agriculture per annum what is the limit that can be earned from 1 acre of land
2 if any nri or relative send amount to india is tha amount taxable
I plan farming in green house ( pollyhouse ). I plan to grow flower and vegetable in this green house for export. Is the income from this green is taxable or this is a agriculture income which is exempt. please post me answer.thanks Vin
Dear Sir,
Good Evening..
I’m planning to start a dairy and poultry farm in future. I just want to know what kind of taxes (e.g Income Tax, Sales Tax) and how much I’ll have to pay on certain income I got from above farming?
Also what should I do in order to get exempt from or reduce these taxes?
Thanks in advance.
Prabhat Shrimali
I have taken certain agricultural land on lease and growing crops on the said land for many years. Now the said land alongwith growing crops has been acquired by the Govt. The Govt paid separate compensation for the land and the crop. Whether the compensation received in lieu of crop is Agriculture Income or not. Further note that assessee has not further invested the amount in agriculture land received as compensation against crop.
S.K. Goyal
9312289953
nan palpannai start ethannai % tax gov pay pannavendum
Income from Jinga sales (prownze) is liable for incometax or not.
My father is cultivating the land on Name for past 8 years. I did not claim the agriculture income till now. Now if I want to claim last 8 years earnings, can I do it in this year?
i want know how to fill FORM J & where to get FORM J
I belong to a village and have agriculture income. I have Term Deposits in Village Bank itself. Please advise if TDS will be deducted against interest on term deposit and method to save the TDS. Please respond immediately.
Income from export of agricultural produce whether exempt from income tax? If yes Under section
Shashidhar
I work for MNC company at Bangalore and I also own 5 acres for Agriculture land which came to my name from my Parents. Can I apply for tax rebate on my my monthly salary?
Mahaveer
Sir,
I have an income of Rs.145000 from my business and an agricultural income of Rs.840,000. Do i need to file the return of income
If any one wants to become farmer or purchase very cheap agricultural land let me know. I can help save alot of taxes
9819767612
kunal.16 at hotmail dot com
sir
my uncle sold the agriculture land in urban area in f.y 12-13. he invest his money of net consideration in purchases of agriculture land before filling the return u/s 139(1).so that he can claim the exemption u/s 54B.He has made the payment through RTGS against the purchases of new agriculture land and also take the possession of the new agriculture land BUT COULD NOT register this land through the registrar by paying stamp duty.
can he right to claim exemption u/s 54b
prakhar
I m salaried peson & having taxable income I want to purchase agricultural land can I purchase it on my name or wife’s name or my huf account …pls suggest … reasons … benefits in income tax…. regards… anil k
sir.. I am planing to start a aquaculture farm on a marshy land which is certified dept of fisheries.will my income on this farming will be tax free??
tamilnadu Government Subsidy (for dry district) taxable or non taxable
MY FRIEND HAS AGRICULTURE LAND 50 ACRES IN ANDHRA PRADESH & PARTNERS SELF & MRS. 1) this PARTNERS ARE OK FOR THE PARTNERSHIP FORM. 2) Can PURCHASE AGRICULTURE LAND. 3) Retun it file is compulsory 4) Agriculture land celling acts in andhra pradesh 4) can increase partnership members
Sale of Saplings is Not an Agricultural Income.
RESPECTED SIR,
MY Question is Mud extracted from agriculture land and sold , Whether consideration received on sale of mud of agriculture land is taxable or not, (agriculture land is not urban agriculture land), kindly explain.
With Regards,
Rajeev Puri
I rear rabbits? is this taxable? if its taxable what percentage tax it attracts?
thank you of provid me information
heloo sir plz sought out my query my q. is in the income tax act agriculture land will be considered as an Rural Agriculture Land if it is not situated any area within the distance measured aerially of not more than the limits given by IT dept.but during the course of assessment in Income Tax act 2013 what kind of document will be considered an appropriate proof that a parti cular land is “rural Agriculture Land”. plz help me plz answer this question sir…
Sir, I have an agricultural income of 5,00,000 rs last year. Now to claim agricultural tax free income what are the reciepts and documents required to show to the income tax officers in case of any enquiry etc.
sir,
we want to take farms which having coconut trees for lease a period of one year sale of coconuts is agricultural income or non agricultural income
we have 5000 Sqft agriculture land and on it have 100 cow and sale milk in open market is it agriculture income or not
Dear Sir,
I wish to clarify a doubt .i.,e.A Partnership firm doing the business of export the live plants.Now it want to file the IT Return.How that firm can claim the exemption? i.e. where Should I mention the Exemption of Income(Agri Income) details in ITR-5?
Sir,
if income from post office commission is Rs56000per annum and agricuture income is rs60000 per annum then which ITR form should be used ?
and is it needed to show the agriculture income in ITR form while the total of income from commission and agriculture income is less than Rs150000?
I am asking this question in refrence following line in your article so please guide
“The inclusion of agricultural income for rate purposes is only required where the total income exceeds Rs 1,50,000.”
My assessee is having a godown at Barauni (Bihar). The godown is used fo storage of agricultural product. So,Whether the income derived from such dodown is taxable or not. Please reply
CA Chandan Singh
sorry,
income my agriculture like sale of tree or rent received from agriculture land etc
Dear Sir,
I want know that if we have received many approx 5 lakh to 10 lakh mor than so will we taxble income.
Sir, I want calrification regarding I had sold agricultural land in Rural area which is outside the Municiple area it is exempt or taxable if is it is exempt than where I report in My ITR-3 I am a partner in firm.
Pl. reply urgently
HI WANT TO ASK IS THERE ANY LAW IN WHICH IT IS BEEN FIXED IF U ARE HAVING 25 ACRES OF LAND THEN U CANT HAD AN INCOME MORE THAN THIS MUCH AMOUNT IS THERE ANY FIX RATIO OF CALCULATING INCOME PER ACRES OR WHAT PLEASE GUIDE THANKS AND WAITING FOR YOUR REPLY
I need education loan bt my parents are farmer den how to proceed n show income as wel as tax
plzzz help me out
where exemption is claimed u/s 54B, and the new Agri Land is sold within period of 36 months (1) for which year taxability arise, the year of original sale or the year in which new land is sold (2) Agri Land is not capital asset, so if i reduce COA of new asset by amount of exemption taken (say any amount), the gain should not be taxable because it is not a capital asset (2) if diversion for question 2 then under which head of income calculation shall be made.
Eagerly waiting for reply.
Sir,
i’m looking for Dairy farming & Herbal Products
pls. suggest me what are the subsidy or Rebate on the above.
although i found land for the same,trying to get bank loan for dairy farming.
I have a pan card but due instability of job i’m not submitting any of my returns(2010-12), is it possible to pay tax of all previous year i.e 2010-12.
if it is possible by paying penalties for same then kindly confirms me.
Thanks
Do companies engaged in the business of cultivation of cash crops need to pay agriculture tax.
We are facilitators can help people getting LEGAL FARMER Status by which he or she can buy any agriculture land in any part of INDIA and enjoy benefits of present and post FDI benefits on AGRICULTURE income and capital gains.
Regards.
Shabby.
Hi,
I have a firm which earns revenue from agricultural activities. My drawings from this firm of which I am the proprietor, is deposited in a savings account which is in my personal name. This amount earns me substantial SB interest. How will this SB interest which is earned, be treated from a taxation standpoint?
I also have some FDs(Fixed Deposits) in my name whose source is agricultural income. How will the interest earned from these FDs, be treated from a taxation standpoint?
1 whether profit on sale of livestock used in agricultural operations are liable to capital gain or not?
Sir,
I have purchased agricultural land 8 bighas and 3 biswas in delhi on 06-0601991 of Rs.7,93,000/- (Rupees seven lacs ninty three thousand only) and land was muted in my name but on 8-6-92land was acquired by DDA for residential township Dwarka. Due toclerical mistake my land was categorised low rate land and I got compensation only 3,93, 000/- by AWARD in Oct. 1994 that I went to Hon`ble court of law for actual compensation, finally now I got Rs.3400000/-(Thirty four lacs), in which I got Rs. 2400000/-(Rupees twenty four lacs only) as interest plus soletium ect and at the time disbursement of amount hon`ble court deducted TDS at the rate of 10% about 245000/- only.
I am not awrae how much tax I have to deposite in the Income Tax or should I file capital gain, because now my land `s actula cost in many crores. I am very much looser.
I shall be very grateful and thankful if you kindly guide meon the above mentioned request.
Looking forward for your favourable reply.
Thanks & regards
Pradeep Kumar
what is the section of relief on agricultural income.