Yogesh Shah (Managing Corporate Finance) (1051 Points)
30 July 2010Hye Folks ...
Our one client (individual) has lent his land to Reliance on which company installed Telephone Tower. Reliance pays monthly rent for this to our client. Main thing is that the land on which tower is installed is agricultural land.
Whether it is agricultural land or income from other sources?
darshan
(AUDITOR)
(223 Points)
Replied 30 July 2010
RENT ON LAND IS COVERED UNDER AGRICULTURAL INCOM SEC 2
BUT SHPULD B FOR AGRICULTURAL PURPOSE ONLY
Rishab
(A.C.A.)
(155 Points)
Replied 30 July 2010
The Income should be taxable under Income from other Sources
MR. R....halpfull hand is back
(.)
(297 Points)
Replied 30 July 2010
harsh
(tyjy)
(44 Points)
Replied 30 July 2010
Does not constitute agricultural income, as it does not come from agricultural activity. it is Income from other sources
utsav
(student)
(58 Points)
Replied 30 July 2010
If it is usual business activity of lending then Business Income otherwise To be charged under the Head Income from other sources. Cant be agricultural income
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 30 July 2010
HI YOGESH,
INCOME FROM OTHER SOUCES BECAUSE IN ORDER TO TREAT RENT AS AGRICULTURAL INCOME, IT MUST HAVE TO SATISFY ALL THE CONDITIONS METIONED UNDER SEC 2(1A) OF IT ACT. ONE OF THE CONDITION SPECIIFIES THAT THE LAND MUST HAVE TO BE USED FOR AGRICULTURAL PURPOSE. SINCE IN THE GIVEN CASE, LAND IS RENTED OUT TO RELIANCE FOR CONSTRUCTING TELEPHONE TOWER, IT IS TAXABLE UNDER THE HEAD INCOME FROM OTHER SOURCES.
REGARDS,
MANOJ
harish .k
(STUDING)
(306 Points)
Replied 30 July 2010
ya above friends are correct , it is taxable under income from other sources only. not under Agricultural income
harish .k
(STUDING)
(306 Points)
Replied 30 July 2010
under other sources head as rental income from Reliance tower rent
| Originally posted by : Yogesh Shah | ||
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Hye Folks ... Our one client (individual) has lent his land to Reliance on which company installed Telephone Tower. Reliance pays monthly rent for this to our client. Main thing is that the land on which tower is installed is agricultural land. Whether it is agricultural land or income from other sources? |
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in addition to this i also want to know if the land is in commercial area and the person lent his Plot to Reliance co or any other co, to install Tower and also he is living or doing business in the same plot.Can he takes this income under Income from house property can claim deduction of 30%.????
| Originally posted by : Manoj B. Gavali | ||
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HI YOGESH, INCOME FROM OTHER SOUCES BECAUSE IN ORDER TO TREAT RENT AS AGRICULTURAL INCOME, IT MUST HAVE TO SATISFY ALL THE CONDITIONS METIONED UNDER SEC 2(1A) OF IT ACT. ONE OF THE CONDITION SPECIIFIES THAT THE LAND MUST HAVE TO BE USED FOR AGRICULTURAL PURPOSE. SINCE IN THE GIVEN CASE, LAND IS RENTED OUT TO RELIANCE FOR CONSTRUCTING TELEPHONE TOWER, IT IS TAXABLE UNDER THE HEAD INCOME FROM OTHER SOURCES. REGARDS, MANOJ |
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Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 30 July 2010
| Originally posted by : Manoj B. Gavali | ||
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HI YOGESH, INCOME FROM OTHER SOUCES BECAUSE IN ORDER TO TREAT RENT AS AGRICULTURAL INCOME, IT MUST HAVE TO SATISFY ALL THE CONDITIONS METIONED UNDER SEC 2(1A) OF IT ACT. ONE OF THE CONDITION SPECIIFIES THAT THE LAND MUST HAVE TO BE USED FOR AGRICULTURAL PURPOSE. SINCE IN THE GIVEN CASE, LAND IS RENTED OUT TO RELIANCE FOR CONSTRUCTING TELEPHONE TOWER, IT IS TAXABLE UNDER THE HEAD INCOME FROM OTHER SOURCES. REGARDS, MANOJ |
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saba fatma
(Articleship)
(139 Points)
Replied 30 July 2010
INCOME FROM OTHER SOUCES BECAUSE IN ORDER TO TREAT RENT AS AGRICULTURAL INCOME, IT MUST HAVE TO SATISFY ALL THE CONDITIONS METIONED UNDER SEC 2(1A) OF IT ACT. ONE OF THE CONDITION SPECIIFIES THAT THE LAND MUST HAVE TO BE USED FOR AGRICULTURAL PURPOSE. SINCE IN THE GIVEN CASE, LAND IS RENTED OUT TO RELIANCE FOR CONSTRUCTING TELEPHONE TOWER, IT IS TAXABLE UNDER THE HEAD INCOME FROM OTHER SOURCES.
Arun Kumar
(Deputy Manager Assurance)
(230 Points)
Replied 30 July 2010
Friends,
I have a question for all those persons who gave clarification on this subject.
If the land is of 10 acres which is fully used for agricultural purposes and just around 5cents is letout for Reliance telecom then why cant this be treated as agricultural income. since the definition just says that Land should be used for agricultural purpose it doesnt put a restriction saying it should be used in full for agricultural purposes. Why cant partial use for agricultural purposes satisfy the condition laid out u/s 2(1A)
Pls reply.
CAclubindia
