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What is meant by agriculture income? What transactions are covered under agricultural income?

answer

M

Manasi

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.