Agriculture Income
AGRICULTURAL INCOME
What is agricultural Income
Section 2(1A)
(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 agricultural or by the process employed to render the produce fit for market or by sale of such produce by a cultivator or receiver of rent-in-kind;
(c). any income derived from a building provided following conditions are satisfied: - (i). The building is situated on or immediate vicinity (surrounding area) of the agricultural land.
(ii). It is occupied by the cultivator or receiver of rent – in-kind.
(iii). It is used as dwelling house, store house or out house and
(iv). The land is assessed to land revenue or it is not situated in specified area.
What is specified area
(A) in any area which is comprised 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 not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or
(B) in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (A), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette.
Points to Note
1. The Land must be an agricultural land and it should be situated in India. If agricultural Land is not situated in India then the income will be chargeable as business income and not agricultural Income.
2. The agricultural income of the cultivator as well as the rent (both in money and in kind) received by the owner of the Agricultural land is exempt from tax.
What is agricultural Income
Section 2(1A)
(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 agricultural or by the process employed to render the produce fit for market or by sale of such produce by a cultivator or receiver of rent-in-kind;
(c). any income derived from a building provided following conditions are satisfied: - (i). The building is situated on or immediate vicinity (surrounding area) of the agricultural land.
(ii). It is occupied by the cultivator or receiver of rent – in-kind.
(iii). It is used as dwelling house, store house or out house and
(iv). The land is assessed to land revenue or it is not situated in specified area.
What is specified area
(A) in any area which is comprised 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 not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or
(B) in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (A), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette.
Points to Note
1. The Land must be an agricultural land and it should be situated in India. If agricultural Land is not situated in India then the income will be chargeable as business income and not agricultural Income.
2. The agricultural income of the cultivator as well as the rent (both in money and in kind) received by the owner of the Agricultural land is exempt from tax.