Agriculture income

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MR. X is the owner of the agriculture land. He provided his land to Mr. Y (farmer) for farming. In return Mr. X receives 1/3rd of the total agricultural income from Mr. Y . Is the income receive by Mr. X is taxable or is to be considered as agricultural  income.

Please provide with the relevant case laws.

Replies (10)

Exempt u/s 10(1) for agriculture income as defined u/s 2(1A)

Yes it is treated as agricultural income.

If we assume that the land is Agricultural land, the income derived by MR X is of the nature of Rent Received from a land which is utilised in connection with cultication of Agriclutural Produce  and will qualify to be Agri Income U/S 2(1A)(c)

As per section 2(1A) of IT act,

"Agricultural income" means - (a) any rent or revenue derived from land which is situated in India and is used for agricultural purposes;

 

Thus as the owner is gettin amount from the person havin agricultural activity on that oand, this will be considered as rental income from land used for agricultural purposes and thus fallin in ambiguity of section 2(1a) and thus exempt

pls provide me the relevant case law.

hi

any income derived by an owner as an rent on land is considered as agri income as per 2(1A) of the act

Is there any Wealth Tax on agriculture land for Mr. X?

If Mr. X sells the agriculture land, are there any short term or long term capital gains?

It is considered as Agriculture Income and will be Exempted....

Exempt u/s 10(1) for agriculture income as defined u/s 2(1A)
 

Hi Sanket & Sagar,

It is not cleat what is exempted?

1. Income on agriculture land

or

2. Wealth tax on agriculture land

or

3. capital gains on agriculture

or

all the taxes?

 

Best Regards,

Raju


CCI Pro

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