Agricultural Income

Agriculture income is exempt under the Indian Income Tax Act. This means that income earned from agricultural operations is not taxed. The reason for exemption of agriculture income from Central Taxation is that the Constitution gives exclusive power to make laws with respect to taxes on agricultural income to the State Legislature. However while computing tax on non-agricultural income agricultural income is also taken into consideration.

What does the term Agricultural Income mean?

As per Income Tax Act income earned from any of the  under given three sources meant Agricultural Income;

(i)     Any rent received from land which is used for agricultural purpose.

(ii)   Any income derived from such land by agricultural operations including processing of agricultural produce, raised or received as rent in kind so as to render it fit for the market, or sale of such produce.

(iii)   Income attributable to a farm house subject to the condition that building is situated on or in the immediate vicinity of the land and is used as a dwelling house, store house etc.

 

Now income earned from carrying nursery operations is also considered as agricultural income and hence exempt from income tax.

In order to consider an income as agricultural income certain points have to be kept in mind:

(i)  There must me a land.

(ii)  The land is being used for agricultural operations.

(iii)   Agricultural operation means that efforts have been induced for the crop to sprout out of the land .

(iv)  If any rent is being received from the land then in order to assess that rental income as agricultural income there must be agricultural activities on the land.

(v)   In order to assess income of farm house as agricultural income the farm house building must be situated on the land itself only and is used as a store house/dwelling house.

 

Certain income which is treated as Agriculture Income;

(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.

 

Certain income which is not treated as Agricultural Income;

(a)    Income from poultery 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 the land with sea water.

(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.

 

Certain points to be remembered;

(a)    Agricultural income is considered for rate purpose while computing tax of Individual/HUF/AOP/BOI/Artificial Judicial Person.

(b)   Losses from agricultural operations could be carried forward and set off with agricultural income of next eight assessment years.

(c)    Agriculture income is computed same as business income.

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261 Responses to “Agricultural Income”

  1. sahil gupta Says:

    if agricultural produce is processed to make it marketable at a place other than the agriculture land then amount charged for such processing will be agriculture income or not ??

    please send the reply to my email

    • Vivek Says:

      Any processing done on Agricultural produce to make it marketable is a part of agricultural operations and such amount recoved will be treated as agricultural income only. Say for example trashing of wheat, mustard, etc is part of agricultural operations only and the amount recoved will be treated as agricultural income only no matter processing takes place on on the land itself or some other place.

      But in certain cases like in the case of tea, coffee, sugarcane where a major processing 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.

      Hope this satisfies you.

  2. Rajiv Says:

    What if agriculture operation is carried on urban land?

    • Viviek Says:

      No Matter whether the land is urban or rural agricultural land. If agricultural operations are carried out on land the income derived from sale of such agricultural produce shall be treated as agricultural income and will be exempt from tax.

  3. Please help me Rajiv Says:

    If any industrial organisation grow crops and sale half of the goods as raw material in market and remaining further processed and sold as finish goods what will be the tax treatment?

    • Viviek Says:

      Agricultural income is exempt from income tax. no matter agricultural operations are done by an industrial organisation or an individual. If any industrial organisation grow crops and sale half of the goods as raw material in market and remaining further processed and sold as finish goods the income earned on first half of produce which is sold in market as raw material is totally exempt from tax.
      The second half of the produce which is further processed in this case 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 deals generally wich says that in cases in which income is partially agriculture 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. Remaining will be treated as non agricultural income.

  4. deepak Says:

    in my agriculture farm i am operating 5 cow in Pune ,
    Maharashtra .this ic not by product, only product of milk. so is this income is agriculture income or taxable income ? (this milk are sold to dairy product plant in nearest co-op society)

  5. supriya Says:

    why rent on land treated as agricultural income? what difference is there if the land is in specified area?

    • Viviek Says:

      Rent received from agricultural land used from agricultural purpose is treated as agricultural income . This is the law.

  6. supriya Says:

    Thank you. Rent received on building used for agricultural purposes is also ttreated as agricultural income, but it is necessary that land should be on or in the vicinty of the land. What if building is not in the vicinty of the land but still it is used for agricultural purpose. then will it be exempted as agricultural income?? If building is given on rent to the cultivator then will that rent be considered as agricultural income?? Please guide when income received on building be treated as agricultural income and why.

  7. NITIN KUMAR Says:

    I GOT A GOOD ANSWER THANKS

  8. rahul Says:

    I have having agricultural income of Rs 3,00,000/- is there any higher limit for the exemption . and how to calculate the agricultural income while including with other sources . kindly tell me the details .

    • Viviek Says:

      There is no higher limit for exemption of agricultural income . Full agricultural income is exempt from income tax.

  9. Haamdh Says:

    Hi
    I’m in process of starting a 50 animal dairy farm, in partnership with a land owner (sleeping partner). I’m selling this milk to milk society (KMF).
    The land is about 15 Acers and I’m using about 10 Acers to grow fodder for these animals. Is this income tax exempted?

    • Viviek Says:

      In your case income is earned in two parts . Ist is sale of fodder to animal farm and 2nd sale of milk to society. Profit earned on sale of fodder to animal farm will be agricultural income and will be exempt while profit earned on sale of milk to society is taxable income. Market price of fodder will be deemed to be the sale consideration received by u on captive consumption of fodder.

      Hope this satisfies u.

  10. nilesh gawde Says:

    I am starting a business of commercial goat farming on agricultural land. Is income from this business taxable?

  11. Pius Pinto Says:

    I am a coffee planter.Growing coffee is considered as agricultural Income.However there are many trees grown(not sponteneously) by us for the purpose of shade.I would like to sell these trees as “sale of timber”. whether the income generated from the sale of Timber is the “agricultural income” ?
    If this is taxable what are the ways by which I can get exemption. I mean say by investing the income in other property (which is not agricultural) or any other ways by which I can get the tax exemption.

  12. NNIKITA MANEK Says:

    why is agricultural income exempted? Aren’t there debates on this issue?

    • Viviek Says:

      There is a big reason behind that….which relates to Constitution of India.
      U can certainly open a forum for discussion on same. Any new idea is welcome.

  13. Dipak Patel Says:

    I am grower of flower in cocpeat in plastic tray on stand and hydroponic system. means 1 feet above the land .(Hydroponics system)
    I sell flower in local market and export also.
    income tax department says you are growing above land therefore it it not an agriculture activity.
    my arguments is this morden technology of growing .it is different from treditional agriculture/horticulture.
    to adopt a new technology is crime in india?
    i want to show a new path to treditional agriculture.
    will you please guide me what to do?
    Dipak Patel

    • Viviek Says:

      As per the Income Tax Act Agriculture Income means income derived from land which is used for agricultural purpose. In your case no land is being used for agriculture purpose in hydroponic system. There fore prima facie income derived from hydroponic system is not an agriculture income. But as per the latest ammendment in Income Tax Act in 2008 “…any income derived from saplings or seedlings grown in a nursery shall be deemed to be agriculturral income”. So if you tell the IT Dept. that what u r doing is similar to nursery operations, then I think it will be helpful to u and ur operations wil be considered as agricultural operations.

  14. Ketan Says:

    Hi Viviek,

    First and foremost, thank you for such insightful information. I’ve got a few questions for you.

    1) Will the sales of agricultural produce on a rented/leased farm (i.e not owned by me) be deemed as an agricultural income? If so, what documentations would be deemed necessary?

    2) Can “sale of seeds” be interpreted as trading of seeds or is just restricted to seeds produced as a result of the agricultural activity.

    3) If I lend a harvester/tractor to other farmers and charge them for it then does such income be qualified as an agricultural income?

    Thank you for your answers in advance.

  15. Arun Says:

    Hai iam a farmer process coconuts into copra under sundrying is it taxable

    • Viviek Says:

      If coconuts are grown by you then the market value of coconuts will be treated as agriculture income and income earned on sale of copra less market value of coconuts will be treated as non agriculture income.

    • Milind Says:

      Dear Vivek,

      If I have purchased agricultural goods such as Raw moong, urd, jowar etc from farmers in Agricultural Produce Market Committee and sell it to Dall Dill or Floor Mills or in other Agricultural Produce Market Committee after adding my commission then my income is taxable..?
      or
      It comes under agricultural income and exempt from tax…? please advice

      • Viviek Says:

        In this case since u r not producing any agriculture produce ur commission income will be taxable income and u have to pay tax at the prevailing rates.

  16. rohit Says:

    i have a agricultural land where there are grass grown the income earned from the grass is tax free? or taxable ? and is it necessary to keep a record to whom the grass is sold for tax purpose?

  17. Kumar Says:

    Hi,

    I cultivate Trees in my land. I’m also an Employee in a private company. I’m was told that I can show the expenses spent for planting & maintaining these trees as deductible from my total taxable earnings. But I’m not having reciepts for the ploughing, planting, irrigating expenses…

    Could you please explain me about this?

    • Viviek Says:

      Onus to prove that certain income is agriculture income lies on the assessee himself. Hence if you want to claim benefit of expenses then you have to arrange receipts of expenses incurred.

  18. rohit Says:

    i have agriculture land the grass grown there is sold so is that under agricultural income ? the income is taxable or not?

    • Viviek Says:

      Income earned from sale of spontaneously grown grass is not agriculture income, hence taxable.

      • AJAY Says:

        Dear Viviek,

        Sorry for bothering you. But mine is a unique problem.

        I have purchased a Coffee Farm/plantaion with 10 Acres of land.

        I have taken loan from bank for the above land. Now I have earned
        5 Lacs + income from above. my income from other sources is
        20 Lacs+ Total comes to 25 Lacs+.

        My question now is how can I save/ get rebate U/s-24 on the
        interest being paid to the bank for purchase of above Land.

        Regards,

        Ajay

      • Viviek Says:

        Income from Coffee farm will be calculated in the same manner as Business income is calculated. While calculating income from coffee farm, interest paid to bank on borrowed funds for purchase of farm is deductible as business expenditure. So Cheer Up . There is nothing to worry.

  19. KAMLESH JANI Says:

    i have purchase agriculture land . i just started nursery . of plants approx 170000 . from salling of such plants i earn approx 32lac can it is an agri. income should i get tax exemption

    • Viviek Says:

      Income from nursery operations is also covered under agriculture income. So, your income from selling nursey plants is also agriculture income.

  20. VINOD SAWLANI Says:

    SIR, MY PVT.LTD. COMPANY HAVING AGRICULTURE INCOME FROM AGRICULTURE LAND IS TAXABLE UNDER PURVIEW OF MAT OR ANY INCOME TAX PROVISION.

  21. deeba Says:

    why agriculture income is exempted from tax?give details.

    • Viviek Says:

      Agriculture income is exempted from tax because our constitution so provides. “Are bhai kahin tau tax bachne do”.

  22. Aseem Gangwar Says:

    We are getting the seed production done through organizer. For which we are making payments to the organizer for the raw material i.e raw seed purchased by him on our behalf. We are making payments to him for the graded seed and for the services offered by him i.e like certification expenses, grading and packing , storage etc. done by the party on our behalf. The payments so done for graded seed and for the services offered by him comes in preview of TDS under section 194 or the same is exempt under agriculture income.

    • Viviek Says:

      In my opinion in your case neither the payment made is exempt under agriculture income nor any TDS provisions are attracted as the payment is made for sale purchase transaction.

  23. NK BHURA Says:

    DEAR SIR
    WILL YOU PLEASE CLARIFY WHETHER AGRICULTURE INCOME RECIVED
    IN A PVT LTD CO. WHETHER MAT IS APPILCABLE ON AGRICULTURE INCOME ? HOW ITS INCOME WILL BE COMPUTED WIHT OTHER
    SOURCE OF INCOME ?

    • Viviek Says:

      Agriculture income is outside the perview of MAT. For easy calculation please keep seprate books of accounts for agriculture & non agriculture activities.

  24. naresh Says:

    whether lease amount received from agriculture land is taxable income or agriculture income

  25. naresh Says:

    rice mill income is agriculture income or taxable income

  26. Sapankumar Shedge Says:

    I am starting a nursery. What are the things required for starting a nursery for taxation. Pl advice me on shop act licence, taxation (can service tax be levied on plants sold from agriculture land. Other taxes involved in nursury bussiness. Does landscaping come under taxes exemption?

  27. Sunny Says:

    Is Rent received from Agriculture lands which are used for Acquaculture/ Fisheries an AGriculture income or not?
    Please clarify my Doubt?

    • Viviek Says:

      Rent received from Agriculture lands which are used for Acquaculture/ Fisheries cannot be treated as agriculture income. Inorder to clain any income as agriculture income land must be used for agriculture operations. Acqaculture/fisheries in not agriculture operation.

  28. Sunny Says:

    I have agriculture lands
    These are given for Lease to Fisheries.(Acquaculture)
    They are paying Lease Rent.
    The Lease Rent is an Agriculture Income or Not.
    Please clarify.

  29. Manohar Desai Says:

    Dear Sir,
    We are Vegetable and flower seed producer and exporter.We produce the seeds on our own land and also on leased land from the farmers.The seeds thus produced by ourselves are cleaned,tested,packed and exported.I am 100% sure that the Income generated is Agricultural Income and therefore exempt from Income tax.Kindly confirm that this is true and I am correct.Thank you.

    • Viviek Says:

      Yes, your activity is agricultural activity in nature , thus income earned from such activity is exempt from income tax.

  30. Amar Says:

    I’m a farm which has Sheep ad Pigs. Is income from selling them is taxable or not?

  31. Amar Says:

    I have a farm with sheep and pigs. Is income from selling them is taxable or not? Thanks in advance.

  32. Vignesh Says:

    Dear Sir,

    Could you please let me know where in the Act it is provided that agricultural losses may be carried forward and set off against agricultural income in future. This is for an academic understanding. Does this come from statute or from legislation?

  33. rohit Says:

    hello
    my cousin buyed land 4 years back for 10 lacs and now he wants 2 sell for 30 lacs as there is capital gain but if he buys another land for 30 lacs will he has to pay any tax?
    plz let me know
    thank u

  34. Sajidullakhan Says:

    Dear sir .
    After reading all the quarries and suggestions about the tax exemption for certain income generated through agriculture .i am interested to ask few some of my quires

    [1] I am working in private firm, would like to invest some part of my money to start nursery by leasing a land of agriculture to produce plants and tree saplings which I am planning to used for my landscape purpose in future and also to sell the plants sampling if required.

    Is the money given for lease/rent and spent on the nursery activities [if all details of expenses kept in the written form/ bills] can be considered as tax exemption to my salary income.

    [2] And the second one, I am planning to start the landscape firm in which agriculture activities like planting of trees species and shrubs and their maintenance in some of residences and companies will be carried. Does the income generated through these Landscape activities is taxable, and doest this activity has service tax applicable.

    Please send me the suggestions to my email id

    Thanks and regards
    Sajid

  35. rohit Says:

    hello
    my cousin buyed agriculture land 4 years back in maharashtra now he wants to convert it in to non agriculture land ?
    1) now i want to ask u the procedure and how much is the conversion charges per acre?
    2)and is there any other taxes on land who has agriculture land since last 4 years?
    plz let me know
    thank u

    • Viviek Says:

      Land use of a particular piece of land is governed by the local authority and the state government in which particular land is situated.
      Hen u can know about procedure & conversion charges from the local development authority office.

      As regarding taxes on agriculture land it is also governed by respective state govt. Hence u can know about it from patwari of that particular area.

  36. rohit Says:

    hello
    i had buyed flat 10 years back now i want to sell it and buy agriculture land of the total amount
    will i have to pay any captital gain on my flat as i m buying agriculture land
    plz let me know

    • Viviek Says:

      Sorry in that case u have to pay capital gain tax.
      No exemption is availabe under the IT Act.

  37. Murthy Says:

    Dear Vivek
    Is MAT is applicable for agriculture income pl let me know

  38. Praveen Says:

    My income form salary is “X” amount which is taxable. I am getting some “Y” amount from agriculture.
    My queries are
    1.If i show “Y” amount in the Form-16 as “other sources of income” along with “X” will that “Y” amount be taxable or non-taxable?
    2.What is the max limit for “Y” in this case?

    Please answer to my queries.

  39. sundar Says:

    in my rice mill i receive paddy from farmers. I charge them fixed sum and convert paddy into rice. whether milling of paddy attracts service tax ? If yes under which head and how ?

  40. B.Ray Says:

    Hi Viviek,

    I am a retired person whose only source of income is FDs in public sector banks. I am paying on an average 20% tax on my total income. I live in a rural area and have very meager expenses. The main income source for the people in my area is agriculture or diary. I was wondering if it makes sense for someone like me to invest in agricultural land where I provide agricultural related services to the local community.

    Can I deducting the expenses I am incurring (and losses) from my taxable income. Is this considered an acceptable way of reducing my tax burden while creating assets.

    Your view would be highly appreciated.

    Thanks, Ray

    • Viviek Says:

      You have not disclosed which type of agricultural related services u are thinking to provide to local community. If u uses that land as warehouse to keep agriculture store or u use that agriculture land for farming then only it will be treated as agricultural activities and income thereon will be exempt. But in that case also losses from agriculture will not be setoff from normal income.

  41. Fazal Says:

    Hello sir,
    my question to u that.Which year dairy farming income was exempted from tax and is it still exempt.

  42. shyamal sarma Says:

    A govt. organisation purchases levy rice from miller. The total payment for such supply of rice includes milling charges, the milling charge so paid, say @Rs.20 per quintal. It is worth mentioning that there is no agreement between the organisation and the miller for such supply. The supply is made by the miller only on the instruction of the State Government.

    Now the question is whether this milling charge is subject to TDS i.e. applicable under section 194.

  43. sekhar Says:

    We sale our agricultural land as commercial plots.Is income available on this sale is taxable.

    Is income availabe on sale can be kept on purchase of agricultural land again or only commercial land?

    Please explain.

    Please suggest better approach to invest to restrain from tax issues

  44. thank u sir for such details given by u in each answer Says:

    sir as we know that govt. make such amendments so as to enjoy some benefit but what is benefit of exempting agriculture income ???? and sir as far as i’m concerned every time govt. has to answer on circular raised by them to the top business person,etc. govt can make plan in accordance with the situation standing infront of them after which they make some circular…..

  45. mohan Says:

    hi……
    s there tax for goat farming ?

  46. Srihari Says:

    We purchased 10 Acres of agricultural land near Sriperambudur, Chennai in 2006 and these lands do not come under the ambit of 2(14) of IT Act. Although we did some paddy, ground nut & red chilly cultivation, we did not show them in the revenue records till 2009. Only 2009-10, we have shown them in the revenue records and agricultural income is also declared in our returns for the FY 09-10. For this year also, we are showing some agricultural income. We now propose to develop these lands with a builder and would like to know if these lands quality for claiming exemption from LTCG tax ?

    • Viviek Says:

      Capital gain is not attracted in case of sale of agricultural land no coming within the ambit of sec 2(14) of IT act. But if that land is sold as stock in trade profit arising will be taxable as business income. In cases of conversion of capital asset into stock in trade taxability arises under two heads. Capital gain will be computed on the date of conversion of capital asset into stock in trade (which is nil in your case) and after conversion business income will be calculated.

  47. rathin routh Says:

    fisheries income is agriculture income or what?

  48. sneh lata Says:

    I am running a nursery. gettining handsome returns.This agriculture income money has been deposited in bank. intrest is above Rs 3 lakh. Am I required to file tax return and does it involve income tax.

  49. Rishi Sachdeva Says:

    Dear Sir

    I own a florist shop and sell fresh flowers. Will income from such business be classified as an Agriculture Income ?

    Rishi

  50. Mahesh Agrawal Says:

    Dear Sir,
    I had an agricultural land, two years back i have done NA of this land. However i am still doing agricultural activities on this land and geting income on this. Whether my income form agricultural produce of a NA land is taxable.

    • Viviek Says:

      Income derived from agricultural activities on a piece of land is agricultural income exempt from Income Tax. There is nothing in the Act which says that the status of land must be agricultural land.

  51. K.S.GARG Says:

    I AM HAVING AN AGRICULTURE LAND , IN WHICH I AM DOING GOAT FARMING AND THESE GOATS WILL BE GIVEN TO POOR SHGS MEMBERS THAT TO FREE OF COST .IN CASE IF I WOULD LIKE TO SELL THE SAME TO THEM THE INCOME GENERATED OUT OF THIS IS TAXEABLE OR NOT

  52. Raj Says:

    Dear Viviek,

    I am starting a biomass business which has been categorized under Agricultural Industry. I understand this operation will be considered tax-free for the first 5 years, however, could you please inform me about the tax % applicable after 5 years?

    • Viviek Says:

      Tax rate depends on the type of status under which you are doing business. It is better to consult your tax adviser for perfect advice.

  53. sundar raman Says:

    my private limited company has incomes from business and agriculture. During the year agricultural land is sold. The cost of agricultural land includes development costs. Whethre TDS is to be deducted and deposited on such development costs of agricultural land ? If yes why so ?

    • Viviek Says:

      In any transaction TDS is to be deducted at the time of payment (or credit of account whcichever is earlier). In your case you had already borne cost of development and now you are selling the land. So at this moment TDS cannot be deducted.

  54. URMILA A NIRGUDE Says:

    RES SIR I HAVE 2.5 HECTOR AGRICULTURE LAND I AM CULTIVETIN IT . MY HUSBAND AND MY MOTTHER IN LAW HAVE ALSO AGRICULTURE LAND COMING FROM BY MY LATE FATHER IN LAW BY NATURE WITH HIS WILL DEAE.
    SIR I AM CULTIVETING LAND .I APPLIED FOR INCOME CERTIFICATE IN KALAMNURI TAHASIL DIST HINGOLI . BUT THE OFFICER IS NOT READY TO GIVE ME INCOME CERTIFICATE GIVING THE REASON THAT YOUR HUSABAND HE IS FAMILY HEAD.
    BUT I SAYS THAT I AM SUBMITING IT RETURNS INDUAL SO PLEASE GIVE ME INCOME CERTIFICATE BUT HE REFUSES.
    BY WHICH RULE /ACT I RECIVED INCOME CERTIFICATE FROM TAHASIL OFFICE?
    TO WHOME I COSULT FOR ASSISTENCE.

  55. Vinith Says:

    Dear Sir,
    What is the proof or documents to be provided while filing the returns to substantiate the income from agriculture. As income from agriculture is tax free people would tend to convert their black money to white easily by showing agricultural income. Is there any limit on agricultural income ? Or is that on a piece of land of particular area only so much of income can be shown ?

    Please clarify.

    • Viviek Says:

      Dear Vinith,
      As now there is paperless return u just have to declare your agricultural income in the return form. Meanwhile you have to collect with yourself all proof to substantiate your agricultural income which is to be produced during the assessment proceedings before the AO. Thre is no limit of showing agricultural income.

  56. harish vaidya Says:

    is income generated from agriculture land and converting it to non agriculture land after 4 years and selling as residential plots,taxable

    • Viviek Says:

      Income from sale of agricultural land (as defined in Income Tax Act) is non taxable , if the agricultural land is sold as residential plot then income generated from such activity is non- agricultural income.

  57. jaiprakash Says:

    A per IT act If the assesses has only agriculture income, & which cumulated to more than 50 lakh and Still he not or in any past year not file ITR, Can he liable tax for current AY.

    • Viviek Says:

      ITR is to be filed if your gross total income exceeds Rs. 160000/-. In your case it seems that if you had earned Rs. 50 lakh from agriculture then you must have invested that money in some type of asset which is geneeating some non-agriculture income. Decision can only be taken after getting full facts of the case.

  58. Koshy Says:

    I am planning to buy rubber plantation along with my family (cousins, uncles etc) in a private company format. The total income in one year will be around Rs 15 lacs. The only activity will be selling raw rubber( zero processing) Is there any tax implication. Some of us are NRIs … does that matter at all ?

    • Viviek Says:

      Sale of raw rubber(zero processing) extracted from rubber plantation will be considered as sale of agricultural produce and income derived from such activity will be agricultural income not chargeable to tax.

  59. venkat rao Says:

    sir
    i want to start a dairy farm in won lands tell me the procedure to exempt from the income tax

  60. BALOCH ISHRAT Says:

    hello i m farmer having land in gujrat region where i have gorwn GRASS after water distilation its derrived ESSENTIAL OIL from it . if i want to SELL this essential oil in OTHER STATE then gujrat PARTY IS DEMANDING CST NOS please clear me weather this essential oil is derived from the LAND origin .is taxable if not what should or what kind of legal LICENSES do i need to bulid my business as FARMER. WAITING FOR UR KIND ADVICE

    • Viviek Says:

      As there is a further processing of grass for extraction of essential oils income derived from sale of such oil is non-agricultural income.

  61. Robin Says:

    dear Sir, I am farmer having agriculture land doing farming fromlast 10 years but now i have joined one MNC company and doing myfarming with Job shall I pay tax on my agriculture income rather my comapny paying tax on my salary. My Agr. income 7,00,000 /year.

    • Viviek Says:

      Your employer company is deducting tax on your salary income but for final tax computation your agricultural income will be clubbed with your non-agricultural income (for rate purposes only) and ten only tax liability will be determined. This you can do by yourself or furnish the details to your employer for correct tax deduction.

  62. Rajesh Says:

    i have one doubt, how to convert capital receipt to revenue receipt

  63. hari krishna Says:

    dear sir,

    I am working in a PSU and i have taxable income of around rs.500000/- and i have an agriculture income of around 25,000/-… is this rs.25000 amount is taxable…and can i shw this agriculture income in annual property returns…….. please guide me on this ……

  64. Anonymous Says:

    Hi Vivek,

    Great website, thanks for sharing the details.

    I am an employee at a private firm and I pay tax every year to the govt. I have invested more than 2.5 lakhs in agriculture in last 2 years. The land belongs to my wife’s grand parents. Is there a way I can claim tax benefit on this investment ? Because this tax exempted will really help me pay back or re-invest into farming & agriculture again.

    Kindly share some details around this. This is a commitment I’ve taken up.

  65. Blackfire Says:

    can you tell me do income by doing mushroom business is an agri business ( since tax free ) or not?

  66. Vinith Says:

    Hi,
    I was wondering if sale of coconuts in retail is also treated as agricultural income.

    ex : I buy coconuts from farm owners and retail them in a shop selling only coconuts is it treated as an agricultural income. We see a lot of people selling coconuts on the carts. Can they show their income as agricultural income ???

  67. harpal Says:

    hi if i sell my agriculture land do i have 2 pay capital gain taxes please advise thank u

    • Viviek Says:

      If your agricultural land comes under the defination of Capital Asset under the Income Tax act then you have to pay Capital Gain Tax .

  68. Sriram Says:

    Dear Viviek,

    I am planning to take on lease agricultural land and cultivate this land and generate agricultural income. As this is for a large piece of land, I am also proposing to raise funds from some close friends and family to finance the working capital for this agricultural activity.
    i) Will the agricultural income from the leased land be exempt from tax ?
    ii) Will I be able to carry forward any loss from this agricultural activity and if so for how many years ?
    iii) Will the interest income / share of profits I pay to my investors be tax free in their hands ?
    iv) Will there be any difference in the responses to the above queries, if the agricultural activity was carried on in a Pvt Ltd Company, instead of myself as an individual ?

    Grateful for your thoughts.

    • Viviek Says:

      Agricultural income from leased land is also exempt from tax. If you incur any agricultural loss then under the provisions of income tax act you can carry forward your agricultural loss to next 8 assessment years. But agricultural losses can be set off against agricultural profits only. Interest income / share of profits would be taxable in the hands of investors. All the above answers will stand even if you carry agricultural activities in a Pvt. Ltd. Co.

  69. shivji gupta Says:

    hi i am doing commercial goat & cow farming. tell me about taxes & what is the benifits taken under goverment policy.

  70. kaushal singh Says:

    Hi,

    I run a ripening chamber for bananas…the raw material is part sourced from other growers and part grown byt he same firm which runs the ripening chamber…does the the value addition through ripening come under “increase the marketability of the agriculture produce” and become tax free …if yes then is it valid on only that part which i grow or also that part which i procure from other growers

    • Viviek Says:

      In my opinion the part of income earned by your firm by growing and ripening bananas is tax free while the income earned from ripening and selling banans procured from other growers is taxable in nature.

  71. sksharma Says:

    sir, how income from agri is calculated at the time of IT return? how self assesment is taken into account ?

    • Viviek Says:

      Income from Agri is calculated same as Business income is calculated. If rental agri income is recd then it is calculated same as House property income.

  72. sajitha Says:

    what is the nature of income arising from agricultural operations carried on in other country in the hands of resident individual? what is the relevant provisions of the act?

    • Viviek Says:

      Under the Indian Income Tax Act only income for agriculture carried out in India is only exempt. Income arising from agricultural operations carried on in other country in the hands of resident individual is taxable.

  73. pavan1661 Says:

    1. Hai I am a farmer process Grapes into rasin under drying is it taxableit taxable

    • Viviek Says:

      Processing grapes into rasins under drying turns out a different product which have separate market. Hence income from sale of rasin is taxable.

  74. RAVI SEKAR Says:

    Dear Mr.Viviek

    Thank u for ur replies, my querry is that some private companies in same campus grow flowers and give to another public company for processing and the processed flowers are sold under the brand name of the public company the sale proceeds are shared by the private and public company. Is the share of the sale proceeds of the public company agricultural income or business in come.

    Thanks in advance.

    regards

    ravi

    • Viviek Says:

      Share of the sale proceed of public company is taxable as business income. No agriculture activity is being carried out by public co. . It is only purchasing flowers from the farmer(pvt. co.). This case is similar to business of a florist.

  75. zaheer Says:

    hi!
    please let me know, can i take cash amount above Rs.50000/- a from any farmer and show in my firm as loan or under any other head. if yes please give me reference. and also let me know, what is the limit for such transaction?how to return it back? by cheque or cash!
    regards
    Zaheer

  76. zaheer Says:

    dear vivek.
    What are the other measures to get cash except unsecured loan above Rs. 20000?

  77. zaheer Says:

    dear
    Please let me know:
    what should a person do, if he is facing insufficient balance in bank for clearing any cheque, and transfer from any account is not possible? And amount is in 6 figure!

  78. Amit Rupnawar Says:

    Hello Sir
    I am farmer growing vegetables & plan to sell my farm veg. & same time procure or collect from other farmer farm & sell direct to home daily in urban area so have to pay tax on that , if yes then how much in Maharashtra

    • Viviek Says:

      Selling self grown vegetables is agriculture income but selling vegetables procured from other farmers in open market is trading activity liable to be added to nonagriculture income.

  79. vikash Says:

    i want to know that agriculture income need any proof , if i have agriculture land,but dont have any proof
    kindly advice
    with regard

    • Viviek Says:

      Since agricultural income is exempt from tax the assessing officer needs to be satisfied that the income shown is actually agricultural income. For that proofs are required.

  80. Vikash Bagree Says:

    Need to know:
    1. Is Income Tax applicable on income generated out of trading of Agriculture Produce?
    2. What is APMC Licence? What are its advantages?

  81. Pranay Luniya Says:

    Hi…..
    Please let me know
    Sale of agricultural land not used for agricukltural purposed,whether capital gains arises or such income will remain exempt in perview of section 10(1)..?

    • Viviek Says:

      Under the income tax act defination of agricultural land on which no capital gains is attracted is specifically given. It does not matter whether the land is being used for agricultural purpose or not. If it comes under the defination of capital asset, it is taxable.

  82. B.Ramkishan Rao Says:

    Sir,

    Iam having salary income and agriculture income out of HUF. Shall I file separate return.

    • Viviek Says:

      If any income is earned by HUF it is assessed seprately under HUF. In your case Salary income will be assessed in your hands and agricultural income (earned out of HUF) will be assessed in hands of HUF.

  83. Vinay MOhta Says:

    Is Income earned from trading of vegetables & food grains is taxable & if its taxable than on what basis?
    for eg.If i earned a profit of Rs.1 lac in a year from trading of vegetables & food grains how much Income Tax i have to pay for that ?

    • Viviek Says:

      Sinple trading of vegetables and food grains is a business activity and it is taxable . The basis of determination of taxable income is same as any other business income.
      In your case if u earn a profit of Rs. 1lac from trading of vegetables then you have to pay tax on Rs. 1 lac.

  84. Vinay Mohta Says:

    for eg.If i earned a profit of Rs.1 lac in a year from trading of vegetables & food grains how much Income Tax i have to pay for that ?

  85. imran khan Says:

    if a salaried person getting salary 30000-p.m.(360000-yearly) & his agricultural income is 30 thousand, then how his income be computed?

    • Viviek Says:

      For computing tax :
      1. Calculate tax on total income (inculsive of agriculture income)
      2. Calculate tax on agriculture income + Basic exemption limit
      3. Difference of Step1 & Step 2 = Tax payable

      In your case tax payable for A.Y. 2010-11 is Rs. 29780/-.

  86. sheriyar Says:

    dear sir,
    i have two question for u, please advice.
    1) i am a realtor and we buy & sell agricultural land also, so do i have to pay capital gains on this transaction, and in another case

    2)me and my family purchased 10 acre of agricultural land in 2003 and gave it for lease and in 2010 we got a good price, then we sold 6 acres, do u need to pay the capital gains?? plz advice

    regards
    sheriyar

    • Viviek Says:

      If ur agricultural land is in rural area i.e. its is not coming under defination of Capital asset as per income tax act then on profit of sale of such land no capital gain is payable.
      For your second question also reply is same.

  87. yatinder kalra Says:

    hie…
    can you please tell me whether mushroom farming comes under tax free agriculture or not???

    • Viviek Says:

      Since mushroom is grown on land and it requires all those effort which are used to grow other agricultural produces,hence, in my opinion income from mushroom farming is agricultural income not liable to tax.

  88. sumanth tammina Says:

    sir …. how many acres of agriculture income can show as white money per person ? and per acre how much amt can we show?

  89. sumanth tammina Says:

    if i have 100 acres … if i earn 50000 per acre… can i show all white money?
    they is no limit?

  90. Adinarayana Says:

    Hi,
    An excellent interactive site with detailed replies.

    A private limited company is having rual agricultural lands and the income derived from agricultural operations is exempt for calculation of MAT. If the company sells this rural agricultural land derives income/capital gains is this profit/gain on sale of agricultural land is exempt from MAT or not?
    Will it make any difference if this agricultural land is shown as stock in trade?
    What would be the applicability of MAT if this rural agricultural lands are shown as Lands or capital/fixed assets?
    Thanks
    Adinarayana

  91. Adinarayana Says:

    Dear Viviek,

    Awaiting for your response on the following which is mailed yesterday.

    A private limited company is having rual agricultural lands and the income derived from agricultural operations is exempt for calculation of MAT. If the company sells this rural agricultural land derives income/capital gains is this profit/gain on sale of agricultural land is exempt from MAT or not? Will it make any difference if this agricultural
    land is shown as stock in trade?

    Whether MAT would be applicable if these agricultural lands are shown as Land under the head Fixed Asset.
    Thanks,
    Adinarayana

    • Viviek Says:

      Since agricultural land is not a capital asset as defined under the Income Tax Act no capital gain/loss is computed on sale of Agricultural land. The profit/loss computed on sale of agricultural land is a capital receipt not chargeable to tax.
      Profit on sale of agricultural land is no where defined as Agricultural Income under the Income Tax Act .
      While calculating book profit under MAT exempt income credited to P/L A/c is reduced and expenses relating to exempt incomes are added back to the Profit as per P/L A/c . It is also not given that capital profit should be reduced from profit as per P/L a/c . Hence profit on sale of agriculture land is to be taken in book profit while calculating MAT.

      However one can form a different opinion on this.

      If this agricultural land is shown as stock in trade then it will certainly be taxable.

  92. Padmakr Says:

    Can I club my agricultural losses with my salaried income?

    • Viviek Says:

      Since Taxable income are not clubbed with non taxable income….similarly losses from source of income which is exempt cannot be clubbed with taxable income.
      Hence agricultural losses can never be clubbed with salaried income.

  93. dmchavan@gmail.com Says:

    This is a good site and still better is the Q&A section

    Few queries:

    Q1) I wish to transfer some of my father’s land in my name and my wife’s namein April 2011 i.e. 2011-2012 financial year. Can we include the income earned in FY 2010-11 from agri source in FY 2010-2011 tax calculation if my father is ready to return back the income he has earned during this period?

    Q2) Can we tranfer the agri income from my home town in Latur to Pune savings bank account in cash? If not what is the right method.

    Q3) Do we need to maintain books or account/ bills for the income/expense/ etc for the farming activity? If yes where can we get the details of the same?

    Q4) I plan to rent the farm to my relative. He will tranfer the rent in cash everymonth to my account in Pune in cash. I dont know what he will do with the farm but am sure that he will not do any non-farming activity. Do I need to maintain any legal document as proof of rent? Assuming that rent from the farm is tax free

    Thanks in advance for answering the queries. How can I contact you in person if I have more queries going ahead? Do you offer paid tax consultancy?

  94. Chavan Says:

    This is a good site and still better is the Q&A section

    Few queries:

    Q1) I wish to transfer some of my father’s land in my name and my wife’s namein April 2011 i.e. 2011-2012 financial year. Can we include the income earned in FY 2010-11 from agri source in FY 2010-2011 tax calculation if my father is ready to return back the income he has earned during this period?

    Q2) Can we tranfer the agri income from my home town in Latur to Pune savings bank account in cash? If not what is the right method.

    Q3) Do we need to maintain books or account/ bills for the income/expense/ etc for the farming activity? If yes where can we get the details of the same?

    Q4) I plan to rent the farm to my relative. He will tranfer the rent in cash everymonth to my account in Pune in cash. I dont know what he will do with the farm but am sure that he will not do any non-farming activity. Do I need to maintain any legal document as proof of rent? Assuming that rent from the farm is tax free

    Thanks in advance for answering the queries. How can I contact you in person if I have more queries going ahead? Do you offer paid tax consultancy?

    • Viviek Says:

      Income Earned by your father in FY 2010-11 cannot be transferred in your account in FY 2011-12. More over if you get transferred land in name of your wife then also income earned from that land will remain taxable in your father’s hand under the clubbing provisions of the Act.

  95. Bhava Says:

    I am NRI. I have land got from my father property in India . I am getting lease amount. Is it taxable for NRI?

  96. Khaiber Says:

    I have an ancestral agricultural land which had been used for farming till date. Now we plan to sell this land and use the money for non-agricultural purpose. I would like to know if -
    1. The land sold would attract any tax on the sum received?
    2. What would be the most appropriate way for money transaction while doing the deal with the buyer?
    3. If the amount received is taxable in hand, what is the best way of investment to avoid taxation on the same?
    Awaiting your response.

    • Viviek Says:

      If the land is urban agricultural land then capital gain tax is attracted . Transactions done by chq are preferred.

  97. Gaganpreet Singh Says:

    I have a query.

    What are the tax implications on Post Harvest Management.

    for eg: What is the tax on Banana ripening project?

    Can anyone suggest me pls?

    • Viviek Says:

      Since post harvest management is non agricultural in nature. Hence income earned from such activity is nonagricultural income and taxable .

  98. Viren Says:

    Great Q/A queries. Many thanks.

    Question:
    Does income is considered agricultural income (i.e. tax exempt) if the person is not agriculturalist or farmer, and performing agriculture activities on non agriculture land.

  99. Reema Says:

    Dear Sir,

    What would be the position under the Income tax Act if on an agricultural land a green house has been set up & activities are carried out ?

    • Viviek Says:

      In green house agricultural activities are carried and and income from such activity is exempt from tax.

  100. Arun Agrawal Says:

    Very good site and very informative too..

  101. vijay Says:

    dear sir
    mere pass 10 beegha jamin bihar me hai govt ke rates kya hai per beegha income
    thank u

  102. dr.rathoud Says:

    i have sold 7 acre of agricutural land in urban area in my wife name , how can i save income tax on this sale . this land been holded by us for 4years .

  103. Rahul Says:

    Hi,
    How do you calculate income tax in following scenario for A.Y. 2011-2012 ?
    Total income from salary is 12,00,000 (Male ) and agriculture income of 5,00,000 .
    How do we calculate income tax when there is salary + agriculture income ?
    What is exact meaning of agriculture income is non taxable. It is considered under the income tax act only for rate purposes.
    Does it mean that if some one has Rs 3,00,000 of salary income and he falls in 2nd category of tax rate, and if he has Rs 10,00,000 agriculture income, then will his tax rate be 30% ?
    In one post you mentioned following-
    For computing tax :
    1. Calculate tax on total income (inculsive of agriculture income)
    2. Calculate tax on agriculture income + Basic exemption limit
    3. Difference of Step1 & Step 2 = Tax payable

    What income tax rate we have to apply while computing tax at point no 1 and 2 ?

  104. rohit Says:

    hello sir
    my question to u is that i want to covert 5 acre agriculture land to NA and then divide it as 5000 sqft per plot and sell it.. can we do that and if yes can u guide me any advocate in pune
    thank u

  105. Praakash Says:

    Sale of Mango from own farm house is a agricultuiral Income or not

    • Viviek Says:

      If you are growing and selling mangoes then its is an agricultural income. If only trading of mangoes is done the the income will be business income.

  106. rohit Says:

    hello sir
    my question to u is that i want to covert 5 acre agriculture land to NA and then divide it as 5000 sqft per plot and sell it.. can we do that and if yes can u guide me any advocate in pune
    thank u

  107. Dilip Joshi Says:

    Dear Sir,
    Kindly address my following queries.

    1. Is FDI allowed in agriculture sector in India? If yes then what %. We plan to cultivate medicinal plants.

    2. If FDI is allowed, can it be used for buying agriculture land in the name of the Company?

    3. Is agriculture income of a Pvt ltd company taxable?

    • Viviek Says:

      Agricultural Income of Pvt. Ltd. Co. is also exempt from tax. Sine your query involves FDI I recommend you to consult your financial consultant.

  108. rakesh sancheti Says:

    is there any intimation reguired to be given to department on first declaration of agriculture income in my return…..

  109. rohan Says:

    I have agriculture income of rs 200000 & Non agriculture income of rs 150000. can you please let me know hoe to calculate tax on it?

    • Viviek Says:

      Step 1 :Calculate tax on agricultural + non agricultural income .
      Step 2: calculate tax on agricultural income +180000/-
      Tax liability= Step 1-Step 2

  110. vinoth kumar Says:

    Dear sir,

    kindly address the below doubt of mine :

    1. is Turmeric produced in my farm – taxable., [ after harvesting turmeric., it needs to undergo boiling water treatment for shelf life ]

    2.I have agricultural net income of 35 lacs per year from mango,coconut,turmeric,sapota,lemon, etc – i dont have business income – all the agri income so derived are converted into jewelleries, house hold expenses, investment in agricultural lands, building house property in the village limits – do i need to file ROI statement with the IT dept…

  111. Garima Pokharna Says:

    Dear Sir,
    I own 100 teak wood trees. i want to gift 4 trees to my sister. Will it be chargeable to tax in my sister’s hands? Kindly elucidate

    • Viviek Says:

      You can gift trees to ur sister. I don’t think it is chargeable to tax if she sell it after a span of time. If she immediately sells them after gift then it will be taxable income.

  112. Dipakk Vadehra Says:

    Vivek, Brilliant Blog. Kudos!!

    Regards
    Dipakk Vadehra

  113. chandra Says:

    HI
    I am having Mango farm and I sell mangos to middle man, is this amount is taxable ?

  114. shahnavaz modasiya Says:

    Thank you so much……..

  115. Sonia Says:

    My mother is Pensioner. Also she gets rent from agricultural land.Is this rent taxable…

  116. CA Dheeraj Agrawal Says:

    Income from Fish Farming is Agriculture income or not.

  117. Saravana Says:

    I understand that goat farm is taxable. However, I believe it should not be 30%

  118. Akash Dawar Says:

    Dear Viviek, I have an agricultural land about 6 acres, and I want to rent it out to a farmer. Is there any max limit of rent which can be taken.
    How to prepare the agreement with the farmer for rent deed.
    Kindly answer my query.

  119. vidya Says:

    Hello, How do you treat interest on capital received by a partner from a firm engaged in agricultural operation?

    • Viviek Says:

      Interest on capital received by a partner from a firm engaged in agricultural operations is non agricultural income.

  120. mandeep Says:

    is income certificate of agriculture our right ??? is this comes under rti???

  121. vidya Says:

    Hello, How do you treat an agricultural income when the assessee has no proof/receipts for the said income?

    • Viviek Says:

      The onus to prove that your income is exempt lies on assessee. It is difficult to prove an agricultural income without any proof/receipts. So it is better to show agricultural income with proper proofs otherwise it will be treated as non agricultural income.

  122. Mustafa Says:

    income from sale of agriculture land is it taxable?

  123. bhavin dasd Says:

    i have agriculture income limit in income tax india

  124. Harit Says:

    If I enter into an agreement with land owner of agriculture land, where I take the land from them on lease / rent basis , pay them rent and do the agricultural operations by myself. Will the income from the sale of the agriculture produce (produced by me n my team), be considered as agricultural income and exempt from tax? Pls answer this!

    • Viviek Says:

      income from agricultural activity is considered as agricultural income exempt from tax . It doesnot matter whether land is own or taken on rent/lease.
      Your query is neither complicated nor ignored. so think before you blame.

  125. Nisha Patil Says:

    is income of a producer company involved in agricultural activities exempted from tax?

  126. Iqbal Singh Says:

    is emu farming consider as agriculture income & tax free, when it is running at agriculture land taken on rent?

    • Viviek Says:

      income from agricultural activity is considered as agricultural income exempt from tax . It doesnot matter whether land is own or taken on rent.

  127. umesh Says:

    Mother has agricultural income and gifts cash more than 50,000/- to son. Will it affect the tax liability of the son? Pl advise.

  128. Parimal Says:

    Hi vivek,
    i have a agri land which i have purchase before 6 month rs. 2000000 and and now i want to sale it in rs 10000000. So how much income will become a taxable. And how much rupees will paid as tax. Buyer of this land want to do non agri activity.

    • Viviek Says:

      If your land is a rural agricultural land then profit on sale of agri land is capital receipt not chargeable to tax. If it is land located in urban area then you have to pay capital gain tax.

  129. Muthukumar Says:

    Whether the Agriculture Income from a land owned by a Registered Firm is exempted?

  130. alok ranjan Says:

    sir,I am working in a PSU and i have taxable income of around rs.500000/-per annum and i have an agriculture income of around 30,000/-per annum… is this rs.30000 amount is taxable…and can i shw this agriculture income in annual immovable property returns…….. please guide me on this case……

    • Viviek Says:

      Agricultural income is exempt from tax . However it is clubbed with non agricultural income for rate purpose. In your case agricultural income of Rs. 30000/- will be added with Rs. 500000/- to calculate tax and then deducted later on. You have to show your agricultural income in your income tax return.

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  132. Read Full Report Says:

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  133. Demetra Says:

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    extremely entertaining and useful! In modern society that’s really hard to achieve.
    Thanks a lot, Niamh

  134. Kellee Says:

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  135. sundeep Says:

    i am cultivating on my agriculture land as well as my brothers land both land was parental land now segregated in our name, then income form same will be taxable in my hand or not?

    • Viviek Says:

      Agricultural income is totally exempt from tax whether u have earned it from cultivating your land or some others land.

  136. Brock Says:

    I wonder the reason why you labeled this posting, “Agricultural Income | Indian Tax Guide”.
    Regardless I really appreciated the post!Thanks a lot,Brock

  137. vichy anti cellulite review Says:

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  138. Mitesh CHokshi Says:

    I HAVE OWNED LAND FOR AGRICULTURE. AND I MADE CROPS AND ANOTHER AGRICULTURE BY SEASONWISE. AND ANNUAL INCOME FROM MY LAND IS APPX. 6,50,000 RS. THAN IT IS TAXABLE OR NOT ??

  139. Manish Says:

    Do you have any case law regarding sale of raisins kismis treated as business income ie not agricultural income. Thank, Manish

    • Viviek Says:

      Since raisins are obtained only after processing of grapes , hence sale of raisins is non agricultural activity and its income is taxable. u can search the case law on internet.

  140. b hussain Says:

    b hussain

    sir, i have large mango gardens where i have grown different variety of mangoes which are of great demand where people come to my gardens and purchase in bulk raw mangoes which they will ripen at their residences. i have roughly about 40 to 50 lacs of sale every year which i record by maintaining receipt book day register and cash book. the next day sale amount is deposited in my bank a/c after deducting the expenses. i do not have a pan card. is it mandatory to file the returns of the income as i do not have any other income. is it mandatory to get a pan card?
    thanking you in advance for ur precious advice.

    • Viviek Says:

      I you have only and only agricultural income or your non agricultural income is less than the basic exemption slab then u need not file your return of income. However filing return of income have certain other benefits also.But i will suggest u to atlest obtain a PAN card.

  141. Manish Says:

    Sale of raisin as business income n not agricultural income, no case law available on Internet. If anybody has pl quote. Thanks

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