Write short notes on Agriculture Income.
Answers
What is Agricultural Income?
In 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.
Examples of 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