neha gupta (Staff) (63 Points)
19 August 2011MR. 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.
Mihir
(Wealth Manager)
(5293 Points)
Replied 19 August 2011
Exempt u/s 10(1) for agriculture income as defined u/s 2(1A)
kamal kishor sen
(STUDENT Rajasthan)
(2156 Points)
Replied 19 August 2011
Yes it is treated as agricultural income.
CA Aditya Modi
(Associate Manager)
(159 Points)
Replied 19 August 2011
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)
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 19 August 2011
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
pavani
(practicing chartered accountant)
(74 Points)
Replied 19 August 2011
hi
any income derived by an owner as an rent on land is considered as agri income as per 2(1A) of the act
Raju
(none)
(50 Points)
Replied 19 August 2011
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?
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 20 August 2011
It is considered as Agriculture Income and will be Exempted....
Sagar Devani
(Corporate and International Taxation)
(1174 Points)
Replied 20 August 2011
Exempt u/s 10(1) for agriculture income as defined u/s 2(1A)
Raju
(none)
(50 Points)
Replied 20 August 2011
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
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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