ITFT- INCOME TAX

AGRICULTURAL INCOMEINCOME TAX ACT - 1961

Agricultural Income The Income which received from

Agriculture source is called Agricultural Income.

Definition U/S 2(IA)

•Agricultural Income Is Fully Exempted as per Income Tax Act 1961 U/S 10(1)

Agricultural Income includes the following

(a).Any Rent or Revenue derived from

Agricultural Land situated in India

(b) Any Income From

(i) Cultivation of Agricultural Land

(ii) a process carried on to make the

produce or rent in kind marketable.

(iii) From sale of Agricultural produce

(c) Income From Agricultural House property

TYPES OF AGRICULTURAL INCOME1. RENT OR REVENUE

2. CULTIVATION OF LAND

3. INCOME FROM A PROCESS

4. INCOME FROM SALE OF PRODUCE

5. INCOME FROM LET OUT AGRICULTURAL H OUSE PROPERTY

TESTS TO DETERMINE AGRI INCOME

• INCOME IS DERIVED FROM LAND

LAND MUST BE USED FOR AGRICULTURE PURPOSE

LAND MUST BE SITUATED IN INDIA

Agricultural Incomes• (a) Income from sale of replanted trees.• (b)   Rent received for agricultural land.• (c)    Income from growing flowers and

creepers.• (d)   Share of profit of a partner from a firm

engaged in agricultural operations.• (e)    Interest on capital received by a partner

from • a firm engaged in agricultural

operations.• (f)    Income derived from sale of seeds.

Non Agricultural Incomes• (a) Income from poultry farming.• (b)   Income from bee hiving.• (c)    Income from sale of  spontaneously

grown trees.• (d)   Income from dairy farming.• (e)    Purchase of standing crop.• (f)    Dividend paid by a company out of its

agriculture income.

(g) Income of salt produced by flooding

(h) Royalty income from mines.(i) Income from butter and cheese making.

(j) Receipts from TV serial shooting in farm house is not agriculture income.