Question

437
8. From the following particulars submitted by Mrs. Sangeeta, compute income from other
sources for the assessment year 2020-21.
Particulars
₹
Director's fees received
8,000
30,000
Agricultural income from land situated in India
Agricultural income from land situated in South Africa
Interest on post office saving account
Interest on Bank FDR (net)
45,000
3,000
40,500
Interest on Public Provident Fund A/C
24,000
Royalty on a book written by her
60,000
Income from undisclosed sources
15,000
Interest on loan given to a relative
Dividend from a domestic company
12,000
6,000
Lottery prize received
35,000
Rent from sub-letting of a flat
(rent paid to landlord for the flat is 12,000)
18,000
She
spent 3,500 for typing the manuscript of the the book written by her. She had also
spent 2,000 for the purchase of lottery tickets and 150 for collecting dividend.
Ans. *2,37,500​

Answer 1

India, agricultural income refers to income earned or revenue derived from sources that include farming land, buildings on or identified with an agricultural land and commercial produce from a horticultural land. Agricultural income is defined under section 2(1A) of the Income Tax Act, 1961. According to this Section, 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). (d) Any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income.

The following are some of the examples of agricultural income:

• Income derived from sale of replanted trees.

• Income from sale of seeds.

• Rent received for agricultural land.

• Income from growing flowers and creepers.

• Profits received from a partner from a firm engaged in agricultural produce or activities.

• Interest on capital that a partner from a firm, engaged in agricultural operations, receives

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