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AGRICULTURE INCOME CA BALA YADAV

Agriculture income

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AGRICULTURE INCOME

CA BALA YADAV

There are certain incomes exempt from income tax as per section 10

Section 10 (1)

AGRICULTURE INCOME

EXEMPT FROM TAX

Q. What is Agriculture Income?

Section 2(1A)

•Any rent or revenue derived from land

•Any income derived from such land by

agriculture or from processing of

agriculture produce

•Any income from farm building i.e. farm

house

Explanation 3 : Any Income from sampling or seedlings grown in NURSERY

shall be deemed to be a agriculture.

Subject To 3 Conditions

INCOME

FROM

LAND

LAND

SITUATED

IN INDIA

LAND

USED FOR

AGRICULTURE

PURPOSE

RENT OR REVENUE DERIVED FROM LAND

Rent Rent should be the payment made in

Cash or

Kind or

Money or

Money’s worth.

By one person to another In respect of a grant of a right to use

land.

Revenue Any revenue means

Rent

Income which falls under section 2(1A) (b) and (c).

If the immediate and effective sources is not land, the income cannot be considered to be agriculture income.

Dividend: from a company carrying agriculture activities?

Questions: Agriculture income or not

Loan obtained by the shareholders out of accumulated profits of a

company carrying agriculture operations?

Interest on arrears of cess or rent payable by the tenant to his land lord?

Commission earned by the broker on selling agriculture produce of n agriculturist?

Salami or Nazrana paid?

Any income derived from such land by agriculture operations

Operations include:1. Processing of agricultural produced

2. Raised or received as rent in kind

So as to render it for market, or Sale of such produce.

Three instances of agriculture income :

Standing

Crop

Raw

Produce

after

harvest

Sold by

agriculturist

himself

1. (i)

(ii) Crop used as raw material by the cultivator in his business.

2. PROCESS EMPLOYED ON PRODUCE TO MAKE IT FIT FOR MARKET.

The gain in the value of the produce, by such Marketing Process or Agriculture Process, is also

classified as AGRICULTURE INCOME.

3. Income From Farm House

Subject To Certain Conditions :

1. Building- Where it should be situated ?

On or Immediate Vicinity Of Land.

Land situated in India and used for agriculture purpose.

2. It is occupied BY Cultivator or Receiver of rent or revenue.

3. It is used as:

a) Dwelling House

b) Store House

4. It should be assessed to land revenue or local rate.

Note: If not assessed to local rate or land revenue, then land should be situated in Rural Area.

Agriculture Income Includes:

Income From Toddy

If, Actual Cultivator of the trees

receives income.

Income From Rubber

If, owner himself performs

slaughter tapping.

Agriculture Income Includes:

LEASE RENT FROM COCONUT

GARDENLease Rent From land leased out for

grazing cattle.

If, lessee pays rent and takes coconut during the term of leaseDeliver possession of the coconut garden to lessor at the term end.

If , lease out for grazing of

cattle for agriculture pursuit.

Agriculture Income Includes:

Sale of Grass Sale from flowers & creepers

If, grass is grown by human

effort.

All basic operations would

have been performed

If, Income is from GROWING flowers & creepers.

Agriculture Income Includes:

Insurance Compensation

On account of damaged caused

to the crops

Sale of seeds

Derived on account of cultivation

by the assesse is an agriculture

income.

NON- AGRICULTURE INCOME

Income From

Sale of forest, trees etc. grown without

human effort

salt produced by flooding the land with sea water & extracting thereon

Stone QuarriesBreeding of

livestock

Dairy farming, butter & cheese

Poultry FarmingFisheries / Royalty

of MinesPreserved Potatoes

Brick MakingSupplying surplus

water to agriculturist

Interest on arrears on rent

Rent for Land/ godowns for storing

crops

THANK YOU