What is meant by agriculture income? What transactions are covered under agricultural income?
Agricultural income is defined under section 2(1A) of the Income-tax Act. As per section 2(1A), agricultural income generally means:
- 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 agriculture operations including processing of agricultural produce so as to render it fit for the market or sale of such produce.
- Any income attributable to a farm house subject to satisfaction of certain conditions specified in this regard in section 2(1A).
- Any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income.
For more details, Please refer clause (1A) of section 2 of NSDL website.