07 January 2010
I have given my agriculture land on contract to a Farmer. HE pays me fixed amount of Rs 2,00,000 per annum. Whether My income will be exempt under section 10. If yes, please provide justification and case law.
07 January 2010
As per Scetion 2(1A) of the Income Tax Act, 1961 agricultural income includes any rent or revenue derived from land which is situated in India and is used for agricultural purposes; ..... The above amount recieved by you is rent for agricultural land which covers in the above defination and hence exempt u/s 10.
07 January 2010
Pl see the following decision also.
If a tea estate engaged in producing agricultural product is leased out, the rent or share of profits derived from it will certainly be treated as agricultural income.
CIT v. Haroocharai Tea Co. [1978] 111 ITR 495 (Gauhati).
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