Section 10(1) of the Income-tax Act, 1961 exempts agricultural income from income-tax. However, net agricultural income is added to the total non-agricultural income computed as per income-tax Act, for the purpose of determining the income-tax on non-agricultural income of an individual, HUE, AOP/BOI or an artificial juridical person, although the agricultural income will remain fully […]
Agricultural Income [Section 2(1A)] Read More »
In the following Cases, Instances of Agricultural and Non-Agricultural Incomes are described in details with examples. Instances of Agricultural Income: In the following cases, income is held as agricultural income: If denuded parts of the forest are replanted and subsequent operations in forestry are carried out, the income arising from the sale of replanted trees.
Instance of Income held to be Agricultural / Non-Agricultural Income Read More »
Tax Treatment of Partly Agricultural and Partly Non-Agricultural Income Tax Treatment of on Composite Business Income i.e. Partly Agricultural and Partly Non-Agricultural Income as per Rules 7, 7A, 7B, 8. For disintegrating a composite business income which is partly agricultural and partly non-agricultural, the following rules are applicable— Income Non-Agricultural Income Agricultural Income Income Tax
Tax on Non-Agricultural Income with partial Agricultural Income As already discussed, there is no tax on agricultural income but if an assessee has non-agricultural income as well as agricultural income, such agricultural income is included in his Total Income for the purpose of computation of income-tax on non-agricultural income. This is also known as partial
Tax on Non-Agricultural Income if the Assessee earns Agricultural Income also Read More »
