Income Tax in India - Agricultural Income

Agricultural Income

Agricultural income is exempt from tax by virtue of section 10(1). Section 2(1A) defines agricultural income as :-

• Any rent or revenue derived from land, which is situated in India and is used for agricultural purposes.
• Any income derived from such land by agricultural operations including processing of agricultural produce, raised or received as rent-in-kind so as to render it fit for the market or sale of such produce.
• Income attributable to a farm house (subject to some conditions).
• Income derived from saplings or seedlings grown in a nursery.