Question

Interest on capital derived by partner from agricultural income is taxable in the hands of partner?

Answer 1

Answer:

Agriculture income is exempt under the Indian Income Tax Act. This means ... Form a company or a partnership firm for the sole purpose carrying on your ... Agricultural Income in India is Exempt from Income Tax u/ s 10(1) of ... salary or interest is taxable in the hands of partnership u/h Business and Profession.

Answer 2

Agricultural Income Tax Treatment / Taxability. 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