This is Ravi Verma in this article I will tell you about agriculture income under the income tax act
- What is meant by agricultural income?
When a person does any work related to agriculture or other agriculture on his land and this work is covered under section 2(1A) of Income Tax Act 1961, then we call it agricultural work.
- Example of agriculture income under the income tax act.
- Any rent or revenue derived from land which is situated in india and is used for agriculture purpose
- Any income attributed to a farm house subject to satisfaction of certain condition specifiedin this regard in section 2(1A)
- Any income drived from saplings or seeds grown in a nursery shall be deemed to be agriculture income.
- Is agriculture income taxable?
As per section 10(1) of the income tax act 1961, agriculture income is exempted from taxation. the central government cannot levy tax on the agriculture income received.
- The government has given two types of criteria for this, in which agricultural income has been made taxable.
- You will not have to pay any tax if your agricultural income does not exceed Rs 5000 in the previous year
- If you have an income of more than 250000 after deducting agricultural income from the total income of the previous year, then you will have to pay tax to the government.