Question

a) What is Agricultural Income? How it is treated for tax purpose?​

Answer 1

Answer:

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 not taxable under Section 10 (1) of the Income Tax Act as it is not counted as a part of an individual's total income. However, the state government can levy tax on agricultural income if the amount exceeds Rs. 5,000 per year.

Answer 2

Answer:

agriculture income is defined under section 2(1A) of the income tax act. agriculture income generally means any rent or revenue drived from land which is situated in India and is used for agriculture purpose.

agriculture income is not taxable under section 10 (1) of the income tax act as it is not counted as a part of an individual's total income.