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 HAND AGRICULTURAL INCOME OF 10 LAKHS AND NO NON-AGRICULTURAL INCOME SHOULD I NEED TO FILE A RETURN.IF IT IS YES,WHAT IS THE SECTION AND RETURN SHOULD I COMPLY WITH AND
I had only agricultural income of 10lakhs and no non-agricultural income.Should I file a return for my agricultural income as per income tax,act.If yes,what is the section and return should I comply with
Is receipt from sale of Wormi compost an agricultural income?
Is receipt from sale of rubber trees an agricultural income?
Is LLP exempt from income tax for sale of agricultural produce like fruits and veg? Agri land is in the name of partners and his brothers. Further if LLP gives rent to landlord will such rent be exempt in the hands of partners?
Sir, I am having agricultural income more than 5 lakh and want to invest in pension plan and not having pan. Is it permissible ?
An assessee discloses agricultural income of Rs.30 lac. Enquiry reveals that the income shown is gross receipt and not net agricultural income. The assessee owns only 20 acre of agricultural land and claims to have carried out agricultural operations on lands owned by his relatives. The land of relatives has not been taken on lease or rent. No consent letters of other owners have also been obtained and filed by assessee. No details/account of expenses have been filed.
Whether the agricultural income derives from cultivation of land of relatives will be treated as agricultural income of the asdessee?
Compensation received from government for the crop destroyed will be treated as income or will be exempted from tax or we have to pay the tax on it
1] Agricultural land owned by A used by B for agricultural activity. There is no formal agreement between the two for use of land. Can B offer agricultural income in his I T return?(A & B have no blood relation)
2] A & B are in blood relation , there is no express agreement and no rent charged by A to B for using land for agricultural purpose. Can B offer income derived from agricultural activity in his return of income? ( land owner A)
very good. it gave a best cocept of taxation on ag. income.
how much bank loan is receibable on 20 lakhs income shown in tax filing to income tax acts.
pl.give an advice in this regards also pl.
Hi I m dharmendra my business income is 9,00,000(nine lakh)
andMy agricultural income is 10,00,000 (ten lakh)
how name tax of financial years 2016-2017
My age 61
I AM FEMALE ASSESSE AND I EARNED VARIOUS INCOME IN F Y 15-16 AS PER BELOW
SEWING & STICHING WORK INCOME 132800
OPERATING RAW MILK PARLOR INCOME 164700
INTEREST RECD FROM SUNDRY PERSONS 62500
AGRICULTURE INCOME 46500
HOW TO COMPUTE TAX LIABILITY AND WHICH CAN BE ITR FORM USED FOR E FILING
I AM FEMALE ASSESSEE I HAVE AGRI INCOME 45000 RS + OTHER INCOME FROM STICHING & SEWING WORK 132800 + INCOME FROM OPERATING MILK PARLOR 164700 AND INTEREST RECD FROM SUNDRY PERSON RS 62500. HOW TO COMPUTE MY TAX LIABILITY AND WHICH ITR USED FOR ABOVE E FILING
Sir there is one query if the soil of agriculture land is used for construction of irrigation canal and a compensation of rs 200000 is received is it taxable or not
Thanks sir
Sir, Thanks for Useful article. My Concern is that if Consultancy Fees (Net) is 3 laks and Agricultural Income id 5 Lak. What will be my Tax liability.
Sir ,
The article has been quite useful for my basic understanding.
I do have a case question of self . Pls help.
My father has an agricultural land and derives agriculture income from that . Further he has taken up tasks to improve/ provide/lay down the water supply/ canal and irrigation systems of other farmers on their lands in lieu of share in their income from agriculture produce for next 2-3 years . Bonds are also made properly for that matter .Now would this revenue as regards a share in their agricultural income as per the contract/bonds constitute AGRICULTURAL INCOME or BUSINESS INCOME?
I’m unable to find relevant sections/ rules .
Kindly help.
Dear tax guru.. happy new year and wish you very great year ahed.
My query is, we grow field field crops like Redgram, Chana, Bajra etc. We sell the produce to local middle man and he in turn give money in the form of cash without any invoice. Now, how to show it as agriculture income? Is there any way to pay APMC Cess and show it as income in ITR ? WHAT IS THE SOLUTION FOR THAT ?
PLEASE REPLY. THANKS.
For an NRI US Citizen, if we buy agri land in parents name, can NRIs inherit back after them. What additional taxes we need to expend at time of inheritance.
Dear Sir,
I have being cultivate in my father’s agriculture land .at the time of selling crop,trader demand 7-12 of land give my father’s name bill and cheque.so what to do for my name’s bill and cheque.
Regards,
Jitendra
if we produce sugarcan and than from we manufacture jaggry .my question is that selling of jaggry is agriculture income or not?
Dear sir,
I earned salary annual 3,00,000/- Professional charge 90,000/- Agriculture incom 3,00,000/- it’s related my father, but my account transfer how is calculated income tax
I am salaried person and annual income of Rs. 1200000/-. I have one ha. agricultural land also. Should I how Agricultural Income in my e return and which form should file.
Sir
I have 10 acres of Palm oil and getting income regularly, is this income come under income tax exmpted?
dear sir
i have income from agriculture 145000/-
what disclosure i have to show in ITR 2. while filing return.
Hi,
We have a farm and we cultivate coconuts. I would like to know if the buyer of our coconuts is tax exempt?
Thank u in advance for clearing my doubt
sir if agricultural land given for leese for parking cars is tax is exception
Dear Sir,
May I Know the Maximum limit of TAX exemption for agricilture?
Hi, I am a private sector employee and a tax payee for my income. I would like to invest on agriculture by forming a company and buying land and start cultivating herbs and aromatic plants. Can I file for tax exception for this kind of investment? The money investment I am planning would be taken as loan from NABARD or any other such kinds of banks. Please let me know if anyone has any similar idea/experience about this. thank you. 9642298187
rajnair76@yahoo.com
Sir,
Kudos for an excellent article. Can you pl. clarify my doubts as under:
1. if an individual having solely agricultural income more than minimum tax slab (ex : net agr. income of say 5Laks, but no other income) he has to file tax returns compulsorily?
2. My understanding is that if wife gets agricultural land from her parents or the husband transfers his agr. land permanently to his wife with proper registration stamp duty paid, then the income from such land is solely hers and not to be clubbed in husband’ hand. Is this correct?
Thanks in advance,
G Banari
Dear reader!,
My name is Bryan Oscar, I’m sorry if i have interrupted your privacy. I am an Investor and the director of The Pillars Public Beneficial franchise organisation.
I came with a good news and also an offer that will help you conquer in the area of financial breakdown in your business.!
Are you a farmer, a business man/woman, civil engineer, a manufacturer a developer?, and you need Capital (money) to start up
or expand your business? Now take this as your best chance to come up to your expectations in your business because we are here
to make sure that all your dreams and expectations in business are full filed.
The Pillars is a Reliable Public Beneficial and franchise group, Organised for the interest of Investors and Entrepreneur,
We Inspire and aspire Entrepreneurs contestants all over the world to make business presentations and the percentage stakes to the
panel of The Pillars Investors who then choose whether or not to invest. The Minimum amount to invest is
$50,000. USD = 38478.71 British Pounds and above, the amount will be delivered diplomatically at the door step of the address you
provided, after the investors and the entrepreneur had agreed on the terms of the percentage. Contact us through this email….
or Whats App for the processes and terms. Come to us, come to The Pillars because we have the money and we are willing to invest in your business,
so kindly bring your business to us and let us invest in your business. We awaits your kind and quick response.
Director Mr Bryan Oscar
Phone call and whatsApp…+447771363249
Email us at thepillarsgroup1985@yahoo.com
Thank You.
Whether books are required to be maintained for agriculture income.
I have agricultural income worth 1000000 from tanents, how can I take rebate if I have no agreement Done orJForm of sold crops? Please send the answer to this Id: yhgill53@gmail.com
Sir, I am a central govt. employee. I have some agricultural land in my name. Every year I rented out it to my neighbour. What and in which form should I keep the proof of rent that could be shown to income tax authorities for their duly satisfaction, if need.
sir i hav some Agriculture land which is received by inharitance from my father and if i sold that land trhough ploting than what shall be tha tax consiquances?
sir, I want to start business of selling juices by purchasing raw grapes from farmers and process it into canned juices.
Will this be treated as agricultural income , if not what best option i can do to count it as agriculture income.?
Please provide what best arrangements can be done
Sir I have sold some Agriculture land in FY 2012-13 in a village beyond 8kms of a Muncipality. When I sold , I have sold some cattle’s and seedlings a few days before and the money was promptly deposited in the Bank instead of generating as Black money in general cases. I have claimed capital gain tax exemption on Agricultural land and others as Agricultural income.
Now AO want to
1. reassess value of the Cows as regular income
2. Increase the value from the Circled value ( guideline value ) to the Govt. valued registered price on a date lat.
Please give me case laws of sales of own grown cows are Agriculture income
and
Latest ruling under KP Varghese Vs ITO case (131 ITR p 597 ( SC) when the full consideration is received before registration and transfer of possession.
sir opium (afim) income is received from central goverment is taxable or not
QUERY
Good Information Sir.
I have some questions.
A partnership firm is engaged in agricultural activities only.
> Is it required that all the partners should be contributing to such activities?(i mean some partners are just sharing the profit and not actually carrying out activity, are they eligible for exempt income?)
> Is it necessary that the land should be in their co-ownership, or is it fine if it is in name of one of the partner?
> Is it necessary for each to be Agriculturist to be a partner in such a firm generating only exempt income?
Any help or guidance would be highly appreciated !
Dear Sir/ Madam,
Please tell me that Tubewell Income which is used in agricultural Land for giving water to trees and plants is consider as an Agricultural Income or not?…
Wheather it is exempt from Tax or Not?
Sir
My question is that why agricultural income is not included in any of the heads of income..? It could have included in any head and thereafter excluded.But it did not find place in any head, why so..?
I have two quires
1 . my salary income is 10 lakhs, I have agriculture land in my name guifted by my father , who presently cultivates it . I get approximately 4 lakhs / pa as agriculture income!crop sold by my father , gets money to his account , then he transfers the money to my account. As bills not in my name can this be considered as my agriculture income! And does this income exempted from income tax!?
2 . my father in law wants sell ancestral agriculture land, whether money he gets from selling is taxable or not?
An agricultural company purchases fruits from a local farmer and only processes it for sale. will it form part of agricultural income?
Dear Sir
I have planted BER, Semiyalata plants in 4 acre agricultural lands. for proper growth of plants we apply agri. operations i.e tillage, fertigation, pesticide spray, weeding etc also.I am cultivating LAC on these planted BER & Semiyalat plants, existing kusum tree on own agricultural land and some rented kusum trees outside. In lac cultivation scientific method (tillage, fertifation/ manuring , weeding, seed inoculation, pest control, harcesting etc is adopted by us. The income from such type of scientific lac cultivation on our agricultural feild is Agricultural Income or taxable. pls suggest us.
Thanks.
short term capital gain 230000 agricultural income 259000 income from business 320000 what is the incometax payable amt/
Sir,
Compensation received from government for the crop destroyed by hailstones will be treated as income .whether it will be exempted from tax or we have to pay the tax on it .
Sir,
Whether, income derived from letting agriculture land for commercial purpose is subect to income tax ?
sir,
In F.Y. 2014-15 will get
1) Net Salary-1,44,000/-
2) Net Agriculture income- 4,70,800/-
How much I have to pay tax? Please explain calculation. – See more at: https://taxguru.in/income-tax/income-tax-treatment-taxability-of-agricultural-income.html#comment-84021
A company that derives its income from sole agriculture and its annual income exceeds 10 lac per year will it be exempted from taxation.
what kind of company should be formed to get complete exemption from paying taxes
Dear Tax Advisor,
I have joined banking sector in the year 2003 and till date, I have worked in different banks for period of 11 as of now. My providend fund accumulated withdrawn in the year 2014 and my previous employer deducted tax on PF withdrawal.
Please advise me in my case tax is applicable or not.