Wednesday, 10 July 2013

Agriculture Income

Q1.  Does Agriculture Income is taxable in India under Income Tax Act,1961?

Ans.  No, Sec 10(1) of Income Tax Act, 1961 exempt Agriculture income from tax.

Q2. What are the situation in which Agriculture Income can be taxed?

Ans.
 1.  As agriculture income is exempt u/s 10(1) from tax but in some cases agriculture income is taken into
      account to determine tax  on non-agriculture income.
 2. Also Agriculture income earned from the agricultural operations outside India is also taxable


Q3. Do those have only source of Income from  agricultural activity i.e. pure agriculture Income needs to file Income Tax Return?

Ans. No, those whose only source of Income is agriculture income are not liable to file Income Tax Return. The reason of this is non applicability of  the provision of applicability of PAN by virtue of sec 139A(8d) of Income Tax Act. 1961.
As per this class or classes of person are not required to apply for PAN as notified by govt. and person who have agriculture income and are not in receipt of any other income chargeable to tax are notified class.




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