AGRICULTURE INCOME
hari krishna
(Querist) 03 January 2011
This query is : Resolved
HELLO SIR,
I AM WORKING IN A PSU AND HAS A TAXABLE INCOME OF AROUND RS.5,00,000/- ,,I ALSO HAVE AN AGRICULTURAL LAND OF 7 ACRES WITH AN INCOME OF AROUND 20,000..IS THIS INCOME IS TAX EXEMPTED OR NOT..?
R.Ramachandran
(Expert) 03 January 2011
You have to indicate as to the exact nature of receipt of the sum of Rs. 20000/-. Whether it is by sale of the agricultural produce (and if so what is the produce) or any other thing.
Only after knowing the exact details as to how the amount is being received an answer can be given to your query.
s.subramanian
(Expert) 04 January 2011
Yes. Furnish those details to enable us to give proper opinion.
hari krishna
(Querist) 04 January 2011
sir,
i earn this income from selling the seeds of groundnut,sunfloweR etc..,
and can i show these income in annual property returns as an asset...and this land is from our ancestors...
thanks in advance.....
Vineet
(Expert) 08 January 2011
The income is very much taxable and includible in your taxable income as you have sufficient taxable income from regular sources. You will get a relief of tax @10% of agricultural income in your case i.e. Rs 2,000/-.
This is a practical answer. Theoretically, yes, Agricultural income is exempt but the method of computation of tax invariably makes its taxable if you are above minimum threshhold taxable limit. You get a nominal allowance in such cases.
PARVEZ RAFIQUE SHEKHANI
(Expert) 08 January 2011
Mr. Hari,
First of all Rs. 20000/- is gross or net agricultural income? If it is gross then deduct expenses incurred for the said income.
Second thing, you said that land is ancestor then, how many are co-occupliers? Divide the income amongst the co-occupliers.
Finally, only your share is taxable in your hands.
