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

Agricultural Income: Meaning and Non-Agricultural Income Related to Land

1. Meaning of Agricultural Income

Agricultural income refers to revenue earned from agricultural activities, including farming, land cultivation, and related operations. As per Section 2(1A) of the Income Tax Act, 1961, agricultural income includes:

1. Rent or Revenue from Agricultural Land: Any income derived from land situated in India and used for agricultural purposes.
2. Income from Agricultural Operations: Income earned from activities such as plowing, sowing, and harvesting crops.
3. Income from Processing of Agricultural Produce: If basic operations like threshing or drying are done to make the produce marketable, it is considered agricultural income.
4. Income from Farmhouses: If the farmhouse is within agricultural land and used for agricultural purposes, income from it is also considered agricultural income.

Tax Treatment: Agricultural income is exempt from tax under Section 10(1) of the Income Tax Act, but it is considered for rate determination under the partial integration method.

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

Certain incomes, though related to land, do not qualify as agricultural income. These include:

1. Income from Sale of Agricultural Land: Profit earned from selling agricultural land is treated as capital gains, not agricultural income.
2. Income from Trees Not Cultivated by the Owner: Sale of naturally grown trees (such as wild forests) is not agricultural income.
3. Income from Processing Beyond Primary Operations: If agricultural produce is processed beyond basic activities (e.g., making sugar from sugarcane), the additional income is considered business income.
4. Income from Poultry Farming and Dairy Farming: Since these activities do not involve crop cultivation, they are not treated as agricultural income.
5. Income from Mining and Stone Quarries: Extracting minerals, sand, or stones from land is classified as business income, not agricultural income.
6. Rental Income from Letting Out Agricultural Land for Non-Agricultural Purposes: If land is rented for purposes like brick-making, commercial use, or industrial activities, the income is not agricultural.
7. Income from Agricultural Machinery or Equipment Rental: If a person earns by leasing agricultural tools or tractors, it is treated as business income.
8. Interest on Late Payment for Agricultural Produce: Any interest received from delayed payments on the sale of agricultural produce is considered interest income and is taxable.
9. Income from Nurseries (Without Land Usage): If plants are grown in pots without soil-based cultivation, the income is considered business income.

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Conclusion

Agricultural income is exempt from tax in India, but many land-related activities generate taxable income. To qualify as agricultural income, it must involve direct involvement in cultivation or primary processing of crops. If the land is used for commercial, industrial, or secondary processing activities, the earnings are treated as business or other taxable income.