RAJ KUMAR (FINANCE MANAGER) (1393 Points)
07 July 2012HELLO FRIENDS, CAN ANYBODY TELL ME, MY CLIENT HAS TAKEN LAND ON LEASE FOR AGRICULTURE PURPOSES.
HE PAYS RENT TO LANDLORD.
FOR LANDLORD IT IS AGRICULTURAL INCOME BUT FOR MY CLIENT IT IS AGRICULTURAL INCOME OR NOT.
HE DOES NOT OWN THE LAND.
PLS. HELP ME.
THANKS.
CA.Anupriya Agarwal
(Practising CA)
(110 Points)
Replied 07 July 2012
In the case of rent or revenue, it is essential that the Assessee
have an interest in the land (as an owner or mortgagee) to be eligible for tax-free income.
However, in the case of agricultural operations it isn’t necessary that the person conducting the
operations be the owner of the land. He could be just a tenant or a sub-tenant. In other words, all
tillers of land are agriculturists and enjoy exemption from tax.
So, for your answer, Ownership is not necessary. Income is Exempt since the assesse is carrying agricultural operations.
If the landlord is perfomrming, he ll get the exemption or if your client then your client will get.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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