Rent frm agriculture land
This query is : Resolved
01 May 2015
experts whether rent received frm agriculture land is taxable or not...???
01 May 2015
Rent from agricultural land, if it is used for agricultural operations then it is not taxable.
01 May 2015
if agriculture land situated in urban area then rent will be taxable.
01 May 2015
AGRICULTURE LAND in rural area and use for agriculture purpose then not taxable.
01 May 2015
No Matter whether the land is urban or rural agricultural land. If agricultural operations are carried out on land the income derived from sale of such agricultural produce shall be treated as agricultural income and will be exempt from tax. Rent received from such urban land is exempted.
07 May 2015
dear seetharaman.
are you sure? there is no exemption for income if the land is situated in urban area..
are you sure? there is no exemption for income if the land is situated in urban area..
08 May 2015
I am sure.
See the link. If you have other views please provide the link for my information so that I stand corrected.
http://taxguru.in/income-tax/income-tax-treatment-taxability-of-agricultural-income.html
Q. why rent on land treated as agricultural income? what difference is there if the land is in specified area?
A. Rent received from agricultural land used from agricultural purpose is treated as agricultural income. This is the law. -
See the link. If you have other views please provide the link for my information so that I stand corrected.
http://taxguru.in/income-tax/income-tax-treatment-taxability-of-agricultural-income.html
Q. why rent on land treated as agricultural income? what difference is there if the land is in specified area?
A. Rent received from agricultural land used from agricultural purpose is treated as agricultural income. This is the law. -
08 May 2015
and what is agriculture land? see the definition for the same. does it include urban agriculture land? refer section 2(1A) and 2(14).
It is only where a land satisfies the definition of agriculture land, income from the same becomes exempt. The urban agriculture lands will more often than not, wont satisfy this.
please please refer to this link from Income-tax website to understand which land is considered as agriculture land.
https://www.caclubindia.com/forum/agriculture-land-utility-income-tax-327011.asp
It is only where a land satisfies the definition of agriculture land, income from the same becomes exempt. The urban agriculture lands will more often than not, wont satisfy this.
please please refer to this link from Income-tax website to understand which land is considered as agriculture land.
https://www.caclubindia.com/forum/agriculture-land-utility-income-tax-327011.asp
08 May 2015
Agricultural Income [Section 10(1)]
As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax.
Agricultural income is defined under section 2(1A) of the Income-tax Act. As per section 2(1A),
agricultural income generally means:
(a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes.
From the above it may be seen that Any rent or revenue derived from land which is situated in India and is used for agricultural purposes is exempted.
Nowhere it is stated as agricultural land. It has been stated as land situated in India. Urban land is covered in this definition.
I still differ with your view you may give a link for other's view.
That definition of agricultural land is for exemption from capital gain for rural agricultural land.
As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax.
Agricultural income is defined under section 2(1A) of the Income-tax Act. As per section 2(1A),
agricultural income generally means:
(a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes.
From the above it may be seen that Any rent or revenue derived from land which is situated in India and is used for agricultural purposes is exempted.
Nowhere it is stated as agricultural land. It has been stated as land situated in India. Urban land is covered in this definition.
I still differ with your view you may give a link for other's view.
That definition of agricultural land is for exemption from capital gain for rural agricultural land.
08 May 2015
my apologies. I agree with your view. I was basing my opinion wrongly on clause c instead of clause a.
08 May 2015
Thank you. I appreciate such discussions which will clear all our doubts.
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