ES कृषि आय से आप क्या समझते हैं? ऐसी आयों को समझाइए जो कृषि आय नहीं हैं यद्यपि भूमि से संबंधित है।

 

Understanding Agricultural Income

1. Meaning of Agricultural Income

• Agricultural income refers to revenue derived from agricultural activities, primarily involving land used for farming, cultivation, and related operations.
• Section 2(1A) of the Income Tax Act, 1961 defines agricultural income and provides exemptions from tax under Section 10(1).

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2. Types of Agricultural Income (As per Income Tax Act, 1961)

A. Income Derived from Land (Used for Agriculture)

✔ Income from cultivation of crops, fruits, vegetables, and plantations.

✔ Sale of agricultural produce in its raw form.

✔ Rent or revenue from agricultural land.

B. Income from Agricultural Operations

✔ Processing of agricultural produce without losing its original character (e.g., drying, husking, crushing).

✔ Income from nurseries and greenhouses where plants grow in natural soil.

C. Income from Farm Buildings

✔ Rental income from farmhouses if they are near agricultural land and used for agricultural purposes.

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3. Income Related to Land but Not Treated as Agricultural Income

Some land-related incomes are not considered agricultural income because they do not directly involve primary agricultural operations. These include:

1. Income from Sale of Processed Agricultural Goods

• If an agricultural product undergoes substantial processing (e.g., sugar from sugarcane, tea from tea leaves), the income from processing is not agricultural income.
• Example: Income from a flour mill processing wheat into flour is taxable.

2. Income from Sale of Trees (Not Cultivated)

• Income from the sale of wild trees or naturally growing forests is not agricultural income.
• Example: Selling timber from naturally grown trees is taxable.

3. Income from Agricultural Land Used for Commercial Activities

• If land is used for commercial purposes (e.g., hotels, brick kilns, cold storage), the income is not agricultural.
• Example: Leasing land for a factory or cinema hall is taxable.

4. Dividend from Agricultural Companies

• If a company earns agricultural income and distributes dividends, the shareholder's dividend is not agricultural income but taxable as other income.

5. Income from Dairy Farming, Poultry, and Fisheries

• Animal husbandry, poultry farming, and fisheries are not agricultural activities, even if conducted on agricultural land.
• Example: Income from a poultry farm on agricultural land is taxable.

6. Income from Renting Land for Non-Agricultural Use

• If agricultural land is rented out for non-agricultural purposes, the income is not considered agricultural.
• Example: Renting land for wedding functions or storage is taxable.

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4. Conclusion

• Agricultural income is tax-free under Section 10(1) of the Income Tax Act.
• However, land-related commercial activities, industrial processing, and rental for non-agricultural use are not treated as agricultural income and are taxable under normal income tax laws.