Question

What is condition for agricultural income definition?

Answer 1

Agricultural income is not to be included in the total income of the assessee. The reason for totally exempting agricultural income from the scope of central income tax is that under the Constitution, the Parliament has no power to levy a tax on agricultural income.

An Income to be classified as Agricultural Income should satisfy the following conditions

1) The Income should be derived from land situated in India

2) The Land should be used for agricultural purpose.