What is the meaning of agricultural income?
Any revenue derived from agricultural land is known as agricultural income and has been exempted from taxation as per the Income Tax Act.
What are the types of agricultural income?
Different types of Agricultural IncomeRent or Revenue Derived from land.Income from Agriculture Operations.Income from Farm House/Building Attached to Agricultural Land.
What is agricultural income give examples?
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.
How do you show agricultural income?
How to show agricultural income in ITR 1? Agricultural income in ITR 1 is to be shown under the column of Agriculture Income. But ITR 1 can only be used if the agricultural income is up to Rs 5,000. In case the said income exceeds this limit form ITR-2 is required to be filed.
Why agriculture income is not taxable?
Agricultural income is not taxable under Section 10 (1) of the Income Tax Act as it is not counted as a part of an individual’s total income. However, the state government can levy tax on agricultural income if the amount exceeds Rs. 5,000 per year.
Is agriculture income tax free?
As discussed above, agricultural income is exempt from income tax. However, the Income-tax Act has laid down a method to indirectly tax such income.
How much tax do you pay on agricultural income?
Agricultural Income – Tax treatment / TaxabilityParticularsAmount in Rs.Income Including Agricultural Income7,00,000Tax on 7,00,000/-52500/-Less: Rebate on Agricultural Income(Tax on Rs. 4,00,000 + Rs. 2,50,000 being basic exemption)42500/-5 more rows•Aug 31, 2018